A corporate bond returns 12 percent of its cost (in PV terms) in the first year, 11 percent in the second year, 10 percent in the third year and the remainder in the fourth year. What is the bond's duration in years?

3.32 years

Explanation:

The remainder return in the fourth year will be calculated as:

= 1 - 0.12 - 0.11 - 0.10

= 0.67

Year 1:

Return = 12% = 0.12

Year × Return = 1 × 0.12 = 0.12

Year 2

Return = 11% = 0.11

Year × Return = 2 × 0.11 = 0.22

Year 3

Return = 10% = 0.10

Year × Return = 0.30

Year 4

Return = 0.67

Year × Return = 2.68

Bond's duration = 0.12 + 0.22 + 0.30 + 2.68 = 3.32 years

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer; ///product strategy;