Question

Suppose you will go to graduate school for 2 years beginning in year 5. Tuition is...

Suppose you will go to graduate school for 2 years beginning in year 5. Tuition is $34,956 per year, due at the end of each school year. What is the Macaulay duration (in years) of your grad school tuitions? Assume a flat yield curve of 0.04.

Assume annual compounding. In the above description, if you see a flat yield curve of 0.08 for example, then it means that the yield at all maturities is 8%.

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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