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1. Consider an annuity that pays 500 at the end of each year for 8 years. The annual effective interest rate is 9 % p.a.

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1. Consider an annuity that pays 500 at the end of each year for 8 years. The annual effective interest rate is 9 % p.a. Compute the present value of this cashflow Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow Enter an answer correct to 2 decimal places 2. A payment of 10 will be made in 10 years. The annual effective interest rate is 1 % p.a. Compute the convexity of this payment Enter an answer correct to 2 decimal places

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