Urgently Need help with a Discount Cash Flow (Duration) question

A

Angela

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May 18, 2016
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Hi there,

I am struggling to understand how to work out Q. number 12 when the interest rate drops to 6.75%, how do I work this one out? where does the 0.0025 come from in the equation? Any help would be really appreciated as I need to get past this question for the exam.. currently don't know where else to turn!:confused::confused:
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Angela said:
Hi there,

I am struggling to understand how to work out Q. number 12 when the interest rate drops to 6.75%, how do I work this one out? where does the 0.0025 come from in the equation? Any help would be really appreciated as I need to get past this question for the exam.. currently don't know where else to turn!:confused::confused:
attachment.php
Click to expand...
7% - 6.75% = 0.25% = 0.0025
 
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