Clementine County's assets have a market value of $5,000,000 and a duration of 11 at the currentmarket interest rate of 2.5%. Use the duration formula to estimate the value of the assets if themarket interest rate changes from 2.5% to 2.2%.O 5.161 millionO 5.247 millionO 5.032 million4.917 million

Duration of assets tell us that how much asset is sensitive to the change in interest rate and how…

Answered: Clementine County's assets have a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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