Duration Gap - Assignment Three investors invest in the same 10-year 8% annual coupon bond. They bought the bond at the same price ($85.503075 for a par value of $100) and at the same time. A is a buy-and-hold investor (hold till maturity), B will sell the bond after four years, and C will sell the bond after seven years. 4.For each of these three investors, find their respective duration gap. (Hint: The difference between the Macaulay duration of a bond and an investors investment horizon is called the duration gap). 5.Use the answers from 1-4 to describe the relations between duration gap, interest rate risk, and reinvestment risk (Hint: Refer to the discussions in Lecture 5-Section 1 to answer the question).