Question: Please help me with the question below with detailed steps, thank you! Question 6. Suppose that a 3-ycar financial instrument is expected to make increasing

Please help me with the question below with detailed steps, thank you!

Question 6. Suppose that a 3-ycar financial instrument is expected to make increasing payments to you at the end of cach of the next three ycars. Specifically, the payments will be CF(t)-1,000t, for t - 1,2 and 3. Assume that you purchase this financial instrument, at time 0, at a price which provides an annual effective yield of 8%. Calculate the Macaulay duration, and the modified duration of this financial instrument. Hint: MacD2.29 , ModD 2.12

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