There is a loan obligation to pay 1000 a year from now 1500


There is a loan obligation to pay $1,000 a year from now, $1,500 two years from now, and $2,000 three years from now. Find the general expression for

(1) Amount of the loan

(2) Macaulay duration

(3) Modified duration

(4) Convexity

Evaluate those expression for an annual effective rate of interest of 6%.

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Financial Management: There is a loan obligation to pay 1000 a year from now 1500
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