Assume continuous compounded interest rate of 87%. Suppose you have a set of cash flows with present
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Question:
Assume continuous compounded interest rate of 87%.
Suppose you have a set of cash flows with present value $22 million, duration 10 years and convexity 556 years squared.
However, you have just been informed that all of your cash flows will be delayed by 13 years. What will your new convexity be?
(The answer is 985, I would like to see how you get that, thanks!)
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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