Question
A pension fund must pay out $2 million in one year, $5 million the following year, and then $4 million the year after that. If
A pension fund must pay out $2 million in one year, $5 million the following year, and then $4 million the year after that. If the discount rate is 6%, what is the duration of this set of payments?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
