11 #9) There is a loan obligation to pay $1000 one year from today and another $1000 two years from today. Assuming the annual effective rate of interest is 10%, find the following: a) Macaulay duration of the loan. b) Modified duration of the loan. c) Convexity of the loan.

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A: Answer a:

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A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

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Q: monthly

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A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

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Q: What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?

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