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Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's YTM is 12% and interest is paid semiannually. You may use Appendix C to answer the questions, a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places, years b. Assuming the bond's YTM goes from 12% to 11.0%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any. % An entrepreneur identifies a product that she knows will sell like crazy if she can only figure out a way to bring it to her area. The idea is so fantastic that I can't tell you what it is, so we will just refer to it as X. The entrepreneur has identified four ways to bring X to the masses; she can import it, she can smuggle it, she can try to produce it on her own, and she can have a local reputable producer make it for her. The fixed and variable costs for each of these alternatives are shown below. Import Produce Smuggle Outsource Variable 50 10 20 40 Cost Fixed 0 400,000 250,000 O Cost 0 What is her best course of action if she believes the demand will be 50,000 units? Produce Import Outsource Smuggle

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