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1. What is the maturity of this loan ? 2. Calculate Market value of the loan as the Present value of each cash flow PV(CFt)

image text in transcribed 1. What is the maturity of this loan ?

2. Calculate Market value of the loan as the Present value of each cash flow PV(CFt)

3. Calculate the duration of the loan

4. Why is the duration less than the maturiy loan ?

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