Calculate the Duration of a Two-Year Corporate Loan Paying 6

question 124

Multiple Choice

Calculate the duration of a two-year corporate loan paying 6 percent interest annually, selling at par.The $30,000,000 loan is 100 percent amortizing with annual payments.

• A)2 years.
• B)1.89 years.
• C)1.94 years.
• D)1.49 years.
• E)1.73 years.

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Definitions:

Higher Education

Post-secondary education provided by universities and colleges, offering a range of academic and professional degrees.

Dynamically Continuous Innovation

Innovations that represent a moderate change to existing products or services, often involving some new features or significant improvements without completely displacing the old ones.

Continuous Innovation

Incremental updates or improvements to a product or service that do not significantly alter consumer behavior but enhance value.

Market Modification

Strategies used by companies to change the characteristics of the marketplace to improve competitiveness and customer appeal.