Assume that you have a liability with following four required payments: $7,000 due in 1...
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Accounting
Assume that you have a liability with following four required payments:
$7,000 due in 1 year
$9,000 due in 2 years
$3,000 due in 3 years
$2,000 due in 4 years
At a r = 8% rate of interest,
(a) What is the present value of this liability? (No need to key-in the answer here.)
(b) What is the duration of this liability? (Keep your answer to 2 decimal places, e.g. xx.12.)
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