Question
16. An amortized asset backed security (ABS) has 7 years to maturity, pays $350 monthly and recently sold for $25,953.90. What is the APR QUOTED
16. An amortized asset backed security (ABS) has 7 years to maturity, pays $350 monthly and recently sold for $25,953.90. What is the APR QUOTED RATE and what is the duration (in years) of this instrument? A) 3.6% APR compounded monthly and the duration is ~6.07 B) 3.66% APR compounded monthly and the duration is ~6.07 C) 3.6% APR compounded monthly and the duration is ~3.395 D) 3.66% APR compounded monthly and the duration is ~3.395 E) 3.66% APR compounded monthly and the duration cannot be computed with the information provided answer is c, please explain how
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
