-Calculate the duration of the liabilities to four decimal places.
A)2.05 years.
B)1.75 years.
C)2.22 years.
D)2.125 years.

Question

-Calculate the duration of the liabilities to four decimal places.
A)2.05 years. 
B)1.75 years. 
C)2.22 years. 
D)2.125 years.

Quizplus · Accepted Answer

11efb877_3dcb_ccd7_9137_2da4d8afcb0f_TB1314_00 The duration of liabilities is calculated using the weighted average time until cash flows are received, considering the present value of each cash flow. The correct calculation results in a duration of 2.22 years.

-Calculate the Duration of the Liabilities to Four Decimal Places