Question: please show all work and do not use excel or a financial calculator. The answer you get must be in the answer key posted at

please show all work and do not use excel or a financial calculator. The answer you get must be in the answer key posted at the bottom, thanks!

please show all work and do not use excel or a financialcalculator. The answer you get must be in the answer key posted

5. At the end of years 2, 4, and 6, we have the following asset cash flow: A2 = 100, A4 = 200, and A6 = 300. The liability cash flow at the end of years 1, 5, and 7 is: L1 = 150, L5 = X, and L7 = 250. Asset and liability cash flows are matched in present value at an annual effective interest rate of 6.5%. (a) Calculate X. (b) Calculate the Macaulay duration of asset cash flow and liability cash flow at 6.5%. Numerical answers (in random order): 6.955, 0.062, 4.5228, 6538.49, 0.04317, 2660.67, 50000, 400.36, 202.1, 3671.29, 1951.62, 4.4621

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!