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Calculate the duration of bond a and bond b

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Reference no: EM132703738

A company has 2 bonds in issue, both with a nominal value of £100 and redeemable at par value:

Bond A 5% maturing in 3 years

Bond B 10% maturing in 3 years

The required yield is 4%.

Required:

Calculate the duration of Bond A and Bond B.

( Macaulay duration and Modified duration)

Reference no: EM132703738

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