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liability has a present value of 300,000 at 4.5% effective. the modified duration of the liability at 4.5% is 10. Let x= the present value
liability has a present value of 300,000 at 4.5% effective. the modified duration of the liability at 4.5% is 10. Let x= the present value of the liability at 4% effective using the 1st order mod approximation. Let y=the present value at 4% effective using the 1st order Mac approximation, determine X-Y
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