You have estimated spot rates as follows: r1 = 2.00%, r2 = 3.00%, r3 = 4.00%. a. Using these spot rates calculate the present value of a three-year 5% coupon bond that has a face value of $1000. Assume annual coupon payments and annual compounding. $ b. Calculate the duration of this bond. (Do not round intermediate calculations ... Round your answer to two decimal places.)

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