Question
On January 1, 2006, Matt is obligated to make annual level payments for 16 years, beginning with a payment on January 1, 2007. His financial
On January 1, 2006, Matt is obligated to make annual level payments for 16 years, beginning with a payment on January 1, 2007. His financial adviser told him that this liability has a Macaulay duration of 7.39 years. Determine the annual effective interest rate the advisor used to calculate the duration. (Answer: 5.43%) (Hint: Use the Cash Flow worksheet.)
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Restaurant Financial Management
Authors: Hyung-il Jung
1st Edition
1774631431, 978-1774631430
