An asset in the market is priced at 12,750 with an annual effective yield rate of 4.5%. The modified duration of the asset is Y. Garen uses the first-order Macaulay approximation to estimate the price of the asset if the yield rate were to decrease by 200 basis points. The result is 15,550. Calculate Y.

Solve c)   What is the payback period (PB) for this project?

Tom Thompson expects to invest $18,000 at 9% and, at the end of a certain period, receive $92,551. How many years will it be before Thompson receives the payment? (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value $ 92,551 Present Value $ 18,000 = Table Factor Years years

Use a calculator to evaluate the amortization formula for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to the nearest cent.) $150,000; 9%; 25 yr