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Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are
Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $5 Million. While analyzing the loan, you are using a YTM equal to 6%. Determine the duration of the loan.
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To determine the duration of the loan we need to calculate the weighted average time until each cash ...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
