Cement Corporation has taken a one-year loan with a face value of $500,000 and a coupon rate of 18%. The loan requires payment of accrued interest and 40% of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the yield is 12%, what is the duration of the loan in years? (Please round your answer to three decimal places.)

Cement Corporation has taken a one-year loan with a face value of $500,000 and a coupon rate of 18%. The loan requires payment of accrued interest and 40% of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the yield is 12%, what is the duration of the loan in years? (Please round your answer to three decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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