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Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 9%. Pd 1 Pd
Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 9%.
Pd 1 Pd 2 Pd 3 Duration Volatility
A. 45 45 50 yrs
B. 25 25 130 yrs
C. 15 15 120 yrs
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