Question: b) Exercise on risk management: duration. A bond makes 10 annual coupon payments, and it matures in 2 years. The face value of the bond

b) Exercise on risk management: duration. A bond makes 10 annual coupon payments, and it matures in 2 years. The face value of the bond is 100 while the current market value is 85. Please, solve the following points:

1. Please, find the Macaulay duration measure for the coupon bond (5 marks)

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