Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the box" at the bottom of table. Assets: 3 year Consumer Loans with an average interest rate of 7% Cash Flow (CF) $561,300 $766,010 $2,702,883 $0 $0 Present Value Factor (PVF) 5 Year Commercial Loans with an average interest rate of 10% Cash Flow (CF) $755,299 $1,254,503 $1,855,631 $3,214,131 $4,005,543 Present Value Factor (PVF) A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format | B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format .935 .873 .816 N/A N/A .909 .826 .751 .683 .621

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
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Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the
box" at the bottom of table.
Assets:
3 year Consumer Loans with an average interest rate of 7%
Cash Flow (CF)
$561,300
$766,010
$2,702,883
$0
$0
Present Value Factor (PVF)
5 Year Commercial Loans with an average interest rate of 10%
Cash Flow (CF)
$755,299
$1,254,503
$1,855,631
$3,214,131
$4,005,543
Present Value Factor (PVF)
A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format |
B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format
.935
.873
.816
N/A
N/A
.909
.826
.751
.683
.621
Transcribed Image Text:Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the box" at the bottom of table. Assets: 3 year Consumer Loans with an average interest rate of 7% Cash Flow (CF) $561,300 $766,010 $2,702,883 $0 $0 Present Value Factor (PVF) 5 Year Commercial Loans with an average interest rate of 10% Cash Flow (CF) $755,299 $1,254,503 $1,855,631 $3,214,131 $4,005,543 Present Value Factor (PVF) A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format | B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format .935 .873 .816 N/A N/A .909 .826 .751 .683 .621
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