Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A financial instrument provides three future cash flows: $1,723.11 at the end of 3 years $2,531.14 at the end of 9 years $1,773.26 at the
A financial instrument provides three future cash flows:
- $1,723.11 at the end of 3 years
- $2,531.14 at the end of 9 years
- $1,773.26 at the end of 10 years
Calculate the duration (D) of the financial instrument at a yield of 10% pa compounded yearly. Give your answer in years to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started