Question 3 (b). Duration is defined as a weighted average of the maturities of the cash payments. Consider the second loan and fill out the following table. In the trow "Old PV", fill in the present value of each cash payments at the end of year 1,2, and 3 , and then sum up the present values in the last column. "Old PV" refers to the present values when the annual interest payment is $3.6 million. In the row "New PV", fill in the present value of each cash payments at the end of year 1, 2, and 3 , and then sum up the present values in the last column. "New PV" refers to the present values when the annual interest payment is $4 million. In the row "Old Weight", fill in the weight of each maturity, and then sum up the weights in the last column. "Old Weight" refers to the weights when the annual interest payment is \$3.6 million. Hint: The second loan have three cash payments with maturities equal to 1,2 , and 3 . years, respectively. In the row "New Weight", fill in the weight of each maturity, and then sum up the weights in the last column. "New Weight" refers to the weights when the annual interest payment is $4 million. Hint: You have already computed the weights in the above questions. Therefore, you just need to fill in the table in Question 3(b). No need to show your work for Question 3(b). A German company issues a dollar-denominated bond and sells it in the United Kingdom. This is an example of a Foreign Bond Domestic Bond Eurobond Microbond A German company issues a dollar-denominated bond and sells it in the United Kingdom. This is an example of a Foreign Bond Domestic Bond Eurobond Microbond