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Calculate the duration of the following cash flows: Year 0.5 0 1 0 1.5 5,000 2 5,000 2.5 10,000 3 10,000 3.5 20,000 4 20,000
Calculate the duration of the following cash flows:
| Year | |
| 0.5 | 0 |
| 1 | 0 |
| 1.5 | 5,000 |
| 2 | 5,000 |
| 2.5 | 10,000 |
| 3 | 10,000 |
| 3.5 | 20,000 |
| 4 | 20,000 |
| 4.5 | 50,000 |
| 5 | 100,000 |
Use 5% as the discount rate.
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