1. Today is May 15, 2000, and the current, semi-annually compounded yield curve is in the table below Compute the Macaulay and modified duration for the following securities: (4 Points) (a) 3-year zero coupon bond (b) 1-year coupon bond paying 4% quarterly Yield Yield Yield Maturity 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 6.33% 6.49% 6.62% 6.71% 6.79% 6.84% 6.87% 6,88% 6.89% 6.88% Maturity 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 6.86% 6.83% 6.80% 6.76% 6.7296 6.67% 6.6296 6.57% 6.51% 6.45% Maturity 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 6.39% 6.31% 6.24% 6.15% 6.05% 5.94% 5.81% 5.67% 5.50% 5.3196