Annuity A pays 1 at the beginning of each year for five years. Annuity B pays 1 at the beginning of each year for four years. The Macaulay duration of Annuity A at the time of purchase is Σ/10. Both annuities offer the same yield rate. Calculate the Macaulay duration of Annuity B at the time of purchase. Σ=22
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Annuity B pays 1 at the beginning of each year for four years.
The Macaulay duration of Annuity A at the time of purchase is Σ/10. Both
same yield rate.
Calculate the Macaulay duration of Annuity B at the time of purchase.
Σ=22
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