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There is an asset which provides two cash inflows: $10,000 in two years and $25,000 in 10 years. The asset is currently priced at 6%

There is an asset which provides two cash inflows: $10,000 in two years and $25,000 in 10 years. The asset is currently priced at 6% effective. (a) What is the modified convexity of the asset? (b) What is the Macaulay convexity of the asset? (Use the formula for Macaulay convexity) (c) Use (a) and (b) to verify the relationship between Cmod and Cmac

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