You have a four-year financial instrument that will pay $106 in year 1, $215 in year 2,

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You have a four-year financial instrument that will pay $106 in year 1, $215 in year 2, $300 in year 3, and $428 in year 4. If the appropriate discount rate is 17% p.a., find the duration of this instrument.

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Feb 26, 2024 02:30 AM

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You have a four-year financial instrument that will pay $106 in year 1, $215 in year 2,

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To find the duration of the financial instrument we need to calculate the present value of each cash ... View the full answer

Corporate Finance

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