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A financial instrument provides three future cash flows: $2,669.45 at the end of 3 years $2,454.62 at the end of 7 years $1,580.72 at the
A financial instrument provides three future cash flows:
- $2,669.45 at the end of 3 years
- $2,454.62 at the end of 7 years
- $1,580.72 at the end of 12 years
Calculate the duration (D) of the financial instrument at a yield of7% pacompounded yearly. Give your answer in years to 2 decimal places.
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
