Question: A one - year, $ 4 0 0 , 0 0 0 loan carries a coupon rate and a market rate of 1 1 %

A one

-

year, $

400, 000

loan carries a coupon rate and a market rate of

11 %

.

The loan requires payment of accrued interest and one

-

half of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year. What is the duration of this loan?

(

answer in years, round to four decimal places

)

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