The Macaulay duration of a cashflow at interest rate io 4.25% is 6.75. Using the...
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The Macaulay duration of a cashflow at interest rate io 4.25% is 6.75. Using the first-order modified approximation, estimate the percent change of the present value P(i) from P(io) if the interest rate is decreased from 4.25% by 25 basis points. A 1.6187% decrease. A 1.6339% decrease. A 1.6187% increase. A 1.6339% increase None of these
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