A liability has a present value of 300 000 at 4.5% effective. The modified duration of...
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A liability has a present value of 300 000 at 4.5% effective. The modified duration of the liability at 4.5% is 10. Let X = the present value of the liability at 4% effective using the first-order modified approximation. Let Y = the present value of the liability at 4% effective using the first-order Macaulay approximation. Determine X-Y. A) - 951 B) - 419 C) 261 D) 315 (E 936 A liability has a present value of 300 000 at 4.5% effective. The modified duration of the liability at 4.5% is 10. Let X = the present value of the liability at 4% effective using the first-order modified approximation. Let Y = the present value of the liability at 4% effective using the first-order Macaulay approximation. Determine X-Y. A) - 951 B) - 419 C) 261 D) 315 (E 936
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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