Ted and Alice Hansel have a son who will begin college 10 years from today. School expenses
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Ted and Alice Hansel have a son who will begin college 10 years from today. School expenses of $45,000 will need to be paid at the beginning of each of the four years that their son plans to attend college. What is the duration of this liability to the couple if they can borrow and lend at the market interest rate of 5.5 percent?
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The duration of a liability is the average time to payment of the cash flows required to retire the ...View the full answer
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Related Book For
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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