Consider a firm that needs to finance an investment project. The firm's project will generate cash flows everv six months for six vears. The first four pavments the firm will receive will be $100,000, the next four will be $200,000, and the final four payments will be $300,000. The cost of the investment is $1,979,503 and the (continuously compounded) yield curve is flat at 5%. The remaining part will be financed using short-term (zero duration) borrowing. Suppose a fraction x of the project is financed via the 10-year bond and the rest (1x) is financed via short-term borrowing. What is the duration of the firm's total liabilities? Note: the portfolio of its liabilities consists of a 10-year bond and short-term borrowing. 1 1 The answer should be an expression involving x. Consider a firm that needs to finance an investment project. The firm's project will generate cash flows everv six months for six vears. The first four pavments the firm will receive will be $100,000, the next four will be $200,000, and the final four payments will be $300,000. The cost of the investment is $1,979,503 and the (continuously compounded) yield curve is flat at 5%. The remaining part will be financed using short-term (zero duration) borrowing. Suppose a fraction x of the project is financed via the 10-year bond and the rest (1x) is financed via short-term borrowing. What is the duration of the firm's total liabilities? Note: the portfolio of its liabilities consists of a 10-year bond and short-term borrowing. 1 1 The answer should be an expression involving x