Question
An investment has cashflows of 75, 100, and 125 at the end of year 1, 2 and 3 respectively. Assume the projects NPV is $260
An investment has cashflows of 75, 100, and 125 at the end of year 1, 2 and 3 respectively. Assume the projects NPV is $260 and Mac Duration is 2.124 years, using duration, calculate the estimate NPV change when YTM decreases by 25 bps, to the nearest cents.
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Private Equity Mathematics
Authors: Oliver Gottschalg
1st Edition
1908783508, 9781908783509
