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| rev | Admin | (Created page with "'''Solution: A''' Because the interest rate is greater than zero, the Macaulay duration of each bond is greater than its modified duration. Therefore, the bond with a Macaulay duration of c must be the bond with a modified duration of a and a = c/(1 + i) which implies 1 + i = c/a. The Macaulay duration of the other bond is b(1 + i) =bc/a. {{soacopyright | 2023 }}") | Nov 20'23 at 12:38 | +367 |