Question: 6 (2 points) (Practice using perturbation method to estimate duration in this quetion) Given that interest rate is 5%. Consider a mortgage that produces $10000

6 (2 points) (Practice using perturbation method to estimate duration in this quetion) Given that interest rate is 5%. Consider a mortgage that produces $10000 a year cashflow and matures in 20 years. Step 1: calculate the price of the mortgage in excel Step 2: change the interest rate to 4.99% and 5.01%, and calculate the respective price of the mortgage in those cases Step 3: Calculate the duration of the mortgage with the formula in "Duration: Estimate" What is the duration of the mortgage? 7.90 8.90 9.90 10.90

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