Find that the modified duration approximately

1. 1.3585

2. 1.4766

Step 1: Calculate the present value of each cash flow.

PV(t1) = CF(t1) / (1 + r)^t1

Total PV = PV(t1) + PV(t2) = 2.4038 + 2.8345 = 5.2383

Step 3: Calculate the weighted average of the present value of cash flows.

Step 4: Calculate the weighted average maturity.

Weighted Avg. Maturity = Weighted PV(t1) + Weighted PV(t2) = 0.8013 + 1.8883 = 2.6896