1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 4 % p.a. Compute the present value of this cashflow £ 数字 Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow |数字 Enter an answer correct to 2 decimal places 2. A payment of £50 will be made in 10 years. The annual effective interest rate is 4% p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 4 % p.a.
Compute the present value of this cashflow
£ 数字
Enter an answer correct to 2 decimal places
Compute the effective duration of this cashflow
|数字
Enter an answer correct to 2 decimal places
2. A payment of £50 will be made in 10 years.
The annual effective interest rate is 4% p.a.
Compute the convexity of this payment
数字
Enter an answer correct to 2 decimal places
Transcribed Image Text:1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 4 % p.a. Compute the present value of this cashflow £ 数字 Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow |数字 Enter an answer correct to 2 decimal places 2. A payment of £50 will be made in 10 years. The annual effective interest rate is 4% p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places
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