Question
Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 8%. (Do not round
Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 8%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)
| Period 1 | Period 2 | Period 3 | Duration | Volatility | |
| A | 40 | 40 | 40 | years | |
| B | 20 | 20 | 120 | years | |
| C | 10 | 10 | 110 | years | |
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Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance
Authors: Roy C. Smith, Ingo Walter
1st Edition
0195171675,0199924015
