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What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C -M + (1+y) (1+y) Current Bond Price Macaulay Duration Macaulay = Duration Formula tx C + (1+ y) nxM (1+ y)n Current Bond Price www 13

What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C -M + (1+y) (1+y) Current Bond Price Macaulay Duration Macaulay = Duration Formula tx C + (1+ y) nxM (1+ y)n Current Bond Price www 13

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C -M + (1+y) (1+y) Current Bond Price Macaulay Duration Macaulay = Duration Formula tx C + (1+ y) nxM (1+ y)n Current Bond Price www 13
Transcribed Image Text:What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C -M + (1+y) (1+y) Current Bond Price Macaulay Duration Macaulay = Duration Formula tx C + (1+ y) nxM (1+ y)n Current Bond Price www 13
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