You have a car loan that will be repaid in full by payments of $7,500 a year

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You have a car loan that will be repaid in full by payments of $7,500 a year at the end of the next two years (i.e. one year from today and two years from today respectively). The current yield on all bonds is 8% p.a. with coupons paid annually.

Calculate the duration of your obligation?

Related Book For answer-question

Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

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Posted Date: Apr 28, 2023 02:34 AM

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You have a car loan that will be repaid in full by payments of $7,500 a year

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To calculate the duration of the car loan we need to find the weighted average ... View the full answer

Financial Accounting A Critical Approach

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