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Assume that an asset has the following end-of-year cash payments Year Payment 1 $2000 2 $3500 3 $4200 4 $1500 What is this asset's duration

Assume that an asset has the following end-of-year cash payments

Year Payment

1 $2000

2 $3500

3 $4200

4 $1500

What is this asset's duration if the interest rate is 8%? Using duration, estimate the percentage change in the price of the asset if the interest rate decreased to 7%.

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