Determine the annual effective interest rate

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Reference no: EM13923098

On January 1, 2006, Matt is obligated to make annual level payments for 16 years, beginning with a payment on January 1, 2007. His financial adviser told him that this liability has a Macaulay duration of 7.39 years. Determine the annual effective interest rate the advisor used to calculate the duration. (Hint: Use the Cash Flow worksheet.)

Reference no: EM13923098

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