What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C n-M + (1+y) (1+y) с Current Bond Price Macaulay Duration tx C + Macaulay = Duration Formula (1+ y) nxM (1+ y)n Current Bond Price 13
What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C n-M + (1+y) (1+y) с Current Bond Price Macaulay Duration tx C + Macaulay = Duration Formula (1+ y) nxM (1+ y)n Current Bond Price 13
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 2EP
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