Question
Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 7%. (Do not round
Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 7%. (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 | 55 | 55 | 70 | years | |
| B | 35 | 35 | 150 | years | |
| C | 25 | 25 | 140 | years |
|
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
