Calculate the duration of commercial loan

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Reference no: EM131886502

1. Say you own an asset that had a total return last year of 10.6 percent. If the inflation rate last year was 4.7 percent, what was your real return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

2. Calculate the duration of a commercial loan. The face value of the loan is $2,000,000. It requires simple inter- est yearly, with an APR of 8%. The loan is due in four years. The current market rate for such loans is 8%.

Reference no: EM131886502

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