Revision as of 17:02, 20 November 2023 by Admin (Created page with "'''Solution: E''' The price is P = 950. The modified duration is <math display = "block"> \frac{-P'}{P} = \frac{-4750}{950} = 5. </math> Macaulay duration is (1.09)(5)= 5.45. {{soacopyright | 2023 }}")
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Exercise

AAdmin
Nov 20'23

Answer

Solution: E

The price is P = 950. The modified duration is

[[math]] \frac{-P'}{P} = \frac{-4750}{950} = 5. [[/math]]

Macaulay duration is (1.09)(5)= 5.45.

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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