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An asset is worth $330,000 today at j 4 = 12%. The asset has a Macaulay duration( D ) of 8.48 years, with a convexity
An asset is worth $330,000 today at j4 = 12%. The asset has a Macaulay duration(D) of 8.48 years, with a convexity of 67.8.
If the interest rate falls to j4 = 11.25%, what is the estimated new value of the asset?
- A.
$310,253
- B.
$351,617
- C.
$351,006
- D.
$309,641
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