Question
A financial instrument provides three future cash flows: $1,581.95 at the end of 3 years $2,765.33 at the end of 8 years $2,075.50 at the
A financial instrument provides three future cash flows:
- $1,581.95 at the end of 3 years
- $2,765.33 at the end of 8 years
- $2,075.50 at the end of 13 years
Calculate the duration (D) of the financial instrument at a yield of7% pacompounded yearly. Give your answer in years to 2 decimal places.
D = ?years
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
