1. Consider a contract that pays out $190 in 6 months, $131 in
12 months, $80 in 18 months, $50 in 2 years. What is this
contract's Macaulay duration (in years)? Assume this contract is
currently trading at a yield of 5%.
2. Consider an annuity contract that pays out $47 at the end of
each of the next four 6-month intervals (payments are to be made 6,
12, 18, and 24 months from today). What is this annuity's Macaulay...