Question: please answer asap will give you good feedback Consider a cash flow of payments 1,2,..., at the end of years 1,2,...,. Suppose the nominal interest
please answer asap will give you good feedback
Consider a cash flow of payments 1,2,..., at the end of years 1,2,...,. Suppose the nominal interest rate is =0.04and that interest is compounded monthly. Tick all the correct statements.
a. If all the above cash payments are the same then the effective duration is equal to the duration.
b. The convexity is the same as the duration squared in this case.
c. The duration and the effective duration are the same for this example.
d. The effective duration is equal to 300/301 times the duration in this case.
e. The effective duration is equal to 25/26 times the duration in this case.
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