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1) The 6-month zero rate is 4% with semiannual compounding. The price of a 1-year bond that provides a coupon of 8% per annum semiannually is 98. What is the 1-year continuously compounded zero rate?

2) ABC company invests $2,000 in an 8-year zero-coupon bond and $4,000 in a 10-year zero-coupon bond. What is the duration of the portfolio?

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