-Calculate the duration of the assets to four decimal places.
A)2.5375 years.
B)4.3750 years.
C)1.7500 years.
D)3.0888 years.

Question

-Calculate the duration of the assets to four decimal places.
A)2.5375 years. 
B)4.3750 years. 
C)1.7500 years. 
D)3.0888 years.

Quizplus · Accepted Answer

11efb876_c3a7_f286_9137_69bae931f9c2_TB1314_00 The question is asking for the duration of the assets, which is calculated as weighted average time until the assets generate cash flows. To calculate the duration, you need to sum up the present value of each cash flow multiplied by the time until the cash flow is received, and then divide by the total present value of the cash flows. Based on the given options, option A has the most accurate duration calculated to four decimal places, indicating it is the best choice.

-Calculate the Duration of the Assets to Four Decimal Places