Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $2 Million. While analyzing the loan, you are using a YTM equal to 9%. Determine the duration of the loan. 1.94 O 2.00 O 1.91 O 3.00 O 1.83
Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $2 Million. While analyzing the loan, you are using a YTM equal to 9%. Determine the duration of the loan. 1.94 O 2.00 O 1.91 O 3.00 O 1.83
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
Related questions
Question
![Consider a business loan maturing in three years that has three remaining
annual payments in one, two, and three years. The annual payments are
all equal to $2 Million. While analyzing the loan, you are using a YTM
equal to 9%.
Determine the duration of the loan.
1.94
O 2.00
O 1.91
O 3.00
O 1.83](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34299ba6-42fb-4b1e-9c3c-c6d3e36d35d0%2Fe2e3c736-f74b-4fec-a6cf-5e2df1ba0861%2F1095i34_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a business loan maturing in three years that has three remaining
annual payments in one, two, and three years. The annual payments are
all equal to $2 Million. While analyzing the loan, you are using a YTM
equal to 9%.
Determine the duration of the loan.
1.94
O 2.00
O 1.91
O 3.00
O 1.83
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