1. Compute the Macaulay duration using the semiannual compounded rate of interest of 5% for a semiannual 4% coupon bond that matures in 2 years. Then, forecast the bond price using your result when the interest rate falls by 10 basis points.
2. What do you see as the pros and cons of obtaining fair market value analyses on the compensation paid to physicians, especially when the market rates are benchmarked against national standards? How could this information be used in negotiating rates with physicians?