1. Consider an annuity that pays £100 at the end of each year for 9 years. The annual effective interest rate is 5% p.a. Compute the present value of this cashflow £ Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow Enter an answer correct to 2 decimal places 2. A payment of £30 will be made in 10 years. The annual effective interest rate is 3% p.a. Compute the convexity of this payment Enter an answer correct to 2 decimal places
1. Consider an annuity that pays £100 at the end of each year for 9 years. The annual effective interest rate is 5% p.a. Compute the present value of this cashflow £ Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow Enter an answer correct to 2 decimal places 2. A payment of £30 will be made in 10 years. The annual effective interest rate is 3% p.a. Compute the convexity of this payment Enter an answer correct to 2 decimal places
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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