Question: please, do not use excel. 1. (10 points) Compute the duration of a bond that pays $100 in year 1 and $5 in year 2.

please, do not use excel. please, do not use excel. 1. (10 points) Compute the duration of

1. (10 points) Compute the duration of a bond that pays $100 in year 1 and $5 in year 2. The term-structure of interest rates is flat at 10%. It means = 12 = 10%

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