Ted and Alice Hansel have a son who will begin college 12 years from today. School expenses
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Ted and Alice Hansel have a son who will begin college 12 years from today. School expenses of $55,000 will need to be paid at the beginning of each of the four years that their son plans to attend college. What is the duration of this liability to the couple if they can borrow and lend at the market interest rate of 5.3 percent?
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To determine the duration of this liability we need to calculate the present value of the future col...View the full answer
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Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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