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A two-year financial instrument produces $166 in year t = 1 and $85 in year t = 2. Find the weight corresponding to t =
A two-year financial instrument produces $166 in year t = 1 and $85 in year t = 2. Find the weight corresponding to t = 1, w1, in the definition of duration as a weighted average of the times at which the cash flows occur: D = 1*w1 + 2*w2. Assume the discount rate is 11% p.a. Give the answer as a percent with 2 decimals; e.g., 6.20%
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