Question: A. 1.6187% decrease. B. 1.6187% increase. C. 1.6339% decrease D. 1.6339% increase. E. none of these The Macaulay duration of a cashflow at interest rate

A. 1.6187% decrease. B. 1.6187% increase. C. 1.6339% decrease D. 1.6339%

A. 1.6187% decrease.

B. 1.6187% increase.

C. 1.6339% decrease

D. 1.6339% increase.

E. none of these

The Macaulay duration of a cashflow at interest rate io 4.25% is 6.75. Using the first-order modified approximation, estimate the percent change of the present value P (i) from P (20) if the interest rate is decreased from 4.25% by 25 basis points

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