Find the weight corresponding

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Reference no: EM131931264

A two-year financial instrument produces $197 in year t = 1 and $64 in year t = 2. Find the weight corresponding to t = 1, w1, in the definition of duration as a weighted average of the times at which the cash flows occur: D = 1*w1 + 2*w2. Assume the discount rate is 10% p.a. Give the answer as a percent with 2 decimals; e.g., 6.20%.

Reference no: EM131931264

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