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Problem 3-12 Duration Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 10%.
Problem 3-12 Duration Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 10%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)
Volatility Period 1 125 105 95 Period 2 125 105 95 Period 3 210 290 280 Duration years years yearsStep by Step Solution
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