An insurance company must make payments of $3 million in two years and $2 million in three years on behalf of one of its clients. If the current interest rate is 8% per year, what is the duration of this obligation? 1) 2.62 years 2) 2.51 years
An insurance company must make payments of $3 million in two years and $2 million in three years on behalf of one of its clients. If the current interest rate is 8% per year, what is the duration of this obligation? 1) 2.62 years 2) 2.51 years
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 85E: ExerciseInstallment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian...
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