Compute the Duration for the Data in This Problem Using

question 42

Multiple Choice

Compute the duration for the data in this problem using a discount rate of 12%.

$\begin{array}{c}\begin{array}{|c|}\hline\\\hline\text {Year, t} \\\hline1\\\hline2\\\hline3\\\hline3\\\hline\end{array}\begin{array}{c|}\hline \text{Cash}\\\hline\text {Flow}\\\hline90\\\hline90\\\hline90\\\hline1000\\\hline\end{array}\end{array}$

• A)3.00 years
• B)2.95 years
• C)2.85 years
• D)2.75 years
• E)2.65 years

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