a. Compute the duration for the following data. Use a discount rate of 13 percent.

b. Explain why the answer to part a is higher than the answer to problem 2.
c. If in part a the discount rate were 10 percent instead of 13 percent, would duration be longer or shorter? You do not need to actually compute a value; merely indicate an answer based on the discussion material in the text.

Year Cash Flow S 50 50 50 50 50 $1,000