At an annual effective rate of interest of 3, a liability has a present value of $500 and a Macaulay duration of 4.72. Calculate the first- order Macaulay approximation of the present value of this...

At an annual effective rate of interest of 3, a liability has a present value of $500 and a Macaulay duration of 4.72. Calculate the first-<br>order Macaulay approximation of the present value of this liability at a new interest rate of 2.85.<br>Possible Answers<br>A 496.57<br>8 498.96<br>503.39<br>D 503.45<br>E 503.91<br>

Extracted text: At an annual effective rate of interest of 3, a liability has a present value of $500 and a Macaulay duration of 4.72. Calculate the first- order Macaulay approximation of the present value of this liability at a new interest rate of 2.85. Possible Answers A 496.57 8 498.96 503.39 D 503.45 E 503.91

Jun 04, 2022

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At an annual effective rate of interest of 3, a liability has a present value of $500 and a Macaulay duration of 4.72. Calculate the first- order Macaulay approximation of the present value of this...

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