Calculate the duration for each of the following investments at = 5% per annum. Interpret your
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Calculate the duration for each of the following investments at δ = 5% per annum. Interpret your answers.
a. Purchase at t = 0 resulting in receipts of $30 at t = 1, 2, 3, and 4.
b. Purchase at t = 0 resulting in receipts of $30 at t = 5, 6, 7, and 8.
c. Purchase at t = 0 resulting in receipts of $30 at t = 1, 2, 5, and 8.
Note that t is measured in years.
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Related Book For
Introduction To Actuarial And Financial Mathematical Methods
ISBN: 9780128001561
1st Edition
Authors: Stephen Garrett
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