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Compute the bond macaulay and modified duration

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Reference no: EM132679180

The term structure is flat at 6%. A bond has 10 years to maturity and coupon rate 8%. Coupon payments are semiannual, par values are 100, and interest rates are expressed as semiannual APRs.

(a) Compute the bond price.

(b) Compute the bond's Macaulay and modified duration.

Reference no: EM132679180

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