You can obtain a loan of $100,000 at a rate of 10 percent for two years. You have a choice of i) paying the interest (10 percent) each year and the total principal at the end of the second year or ii) amortizing the loan, that is, paying interest (10 percent) and principal in equal payments each year. The loan is priced at par. (HINT: For the amortized loan, find PMT with an N of 2, PV of zero and thern add 10,000 interest each year to find the equal principal and interest payments for each year for your duration calculation) a) b) What is the duration of the loan under both methods of payment? Explain the difference in the two results? You can obtain a loan of $100,000 at a rate of 10 percent for two years. You have a choice of i) paying the interest (10 percent) each year and the total principal at the end of the second year or ii) amortizing the loan, that is, paying interest (10 percent) and principal in equal payments each year. The loan is priced at par. (HINT: For the amortized loan, find PMT with an N of 2, PV of zero and thern add 10,000 interest each year to find the equal principal and interest payments for each year for your duration calculation) a) b) What is the duration of the loan under both methods of payment? Explain the difference in the two results