What is the duration of the loan in term of years

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Question: Consider a one-year loan with a face value of $100,000 and a coupon rate of 11%. The loan requires payment of accrued interest and one-quarter (25%) of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year. If the required yield is 15%, what is the duration of the loan in term of years?(Please round your answer to three decimal places.)

Reference no: EM133497089

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