a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each month YTM is 12%. a. what is Macaulay duration of this financial instrument? b. what us modified duration of this financial instrument?
a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each month YTM is 12%. a. what is Macaulay duration of this financial instrument? b. what us modified duration of this financial instrument?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 22PROB
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a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each month YTM is 12%.
a. what is Macaulay duration of this financial instrument?
b. what us modified duration of this financial instrument?
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