Calculate the duration of the financial instrument at yield

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Reference no: EM132531356

A financial instrument provides three future cash flows:

  1. $2,739.75 at the end of 2 years
  2. $1,852.58 at the end of 8 years
  3. $1,162.43 at the end of 13 years

Question 1 : Calculate the duration (D) of the financial instrument at a yield of 7% pa compounded yearly. Give your answer in years to 2 decimal places.

Reference no: EM132531356

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