9-65 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.
A) 2 years.
B) 1.89 years.
C) 1.94 years.
D) 1.49 years.
E) 1.73 years.
Correct Answer:
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