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Sagot :
Answer:
3.04
Explanation:
Calculation to determine Dmod.
First step is to calculate the present value of the assets which also represent the present value of the liability
Present value of the assets =$15,000+$45,000
Present value of the assets = $60,000
Second step is to calculate the modified duration of the assets which is the weighted average
Modified duration of the assets=($15,000/$60,000)/1.80+$45,000/$60,000Dmod
Modified duration of the assets=0.25(1.80) + 0.75Dmod
Third step is to calculate the Modified duration of the liability
Modified duration of the liability =3/(1+0.1)
Modified duration of the liability =3/1.1
Now let calculate Dmod
Dmod = (3/1.1 – 0.45)/0.75
Dmod=(2.7272-0.45)/0.75
Dmod=2.2772/0.75
Dmod=3.036
Dmod=3.04 (Approximately)
Therefore Dmod is 3.04
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