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BY Gautam Brahma

Duration of a level annuity is given by the formula

( 1+yield/yield )- (No of payments)/{(1+yield)^no of payments -1}

i.e (1.06/.06) - (5)/{(1.06)^5-1}

i.e 2.88 years

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Q: If 5 year annually annuity had a yield at 6 percent what its duration?
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