You sold a security which requires you to pay $728.50 two years from now and $715.80...

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Question

You sold a security which requires you to pay $728.50 two years from now and $715.80 ten years from now. The yield to maturit

Answer 1

Answer #1

Macaulay duration of liability= summation of (PV of the cash flow /Total PV) * time in years)= 5.191

= 5.2 (approx) ans B

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Answer 2

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