What is the duration of this liability

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Reference no: EM131623659

Assume that you have a liability with following four required payments

$5000 due in 1 year

$7000 due in 2 years

$4000 due in 3 years

$6000 due in 4 years

As a r=12% rate of interest

a) What is the present value of this liability?

b) What is the duration of this liability.

Reference no: EM131623659

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