Problem 3-13 DurationCalculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is6%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimalplaces.)Period 1Period 2Period 3DurationVolatilityA9CB188110110180years9090260years8080250years

The present value (PV) of each cash flow is calculated as:PV=CF⋅(1+r)−twhere:(CF) is the cash…

Answered: Problem 3-13 Duration Calculate the…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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