What is the Modified Duration of the following loan? (round to two places) You will pay $10,000 of principal in one year, $9,000 of principal in two years, and the final $6,000 of principal in three years. Interest, at 6%, is due annually at the end of the year. Group of answer choices 1.77 1.72 1.81 1.68 None of the above
What is the Modified Duration of the following loan? (round to two places) You will pay $10,000 of principal in one year, $9,000 of principal in two years, and the final $6,000 of principal in three years. Interest, at 6%, is due annually at the end of the year. Group of answer choices 1.77 1.72 1.81 1.68 None of the above
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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Ab. 123.
Transcribed Image Text:What is the Modified Duration of the following loan? (round to two places) You will pay $10,000 of principal in one year, $9,000 of
principal in two years, and the final $6,000 of principal in three years. Interest, at 6%, is due annually at the end of the year.
Group of answer choices
1.77
1.72
1.81
1.68
None of the above
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