The present value is $14,266.12, while the duration of the obligation is 1.48 years.
How to Calculate Present Value and Duration of an Obligation
Note: See the attached photo for the calculations of both the present value and duration.
In the attached photo, note the following in the calculation of the discounting factor:
r = Current bond yield = 8%
Also from the attached photo, we have:
Present value = Total of present value = $14,266.12
Duration of the obligation = Total of duration in year = 1.48 years
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