What is present value of annuity

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1. You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 9.3 percent to 8.8 percent, the fair present value rose from $965 to $975. What is the duration of this bond? Assume annual payments. ((Do not round intermediate calculations. Round your answer to 2 decimal place. (e.g., 32.12)) Duration of this bond

2. What is the present value of annuity that pays $200 at the end of each quarter of a 10-year term if the interest rate is 5%?

a. $3,256.39 b. $4,256.39 c. $5,256.39 d. $6,256.39 e. None of the above.

Reference no: EM131979393

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