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1.An interest rate is quoted as 8% per annum with semi-annual compounding. What is the equivalent rate with monthly compounding? 8.16% 7.87% 14.39% 14.65% 10.47% 10.31% 10.57% 8.60% 7.84%

2.a company's balance sheet, the asset includes: A1 with value of $3 million and duration of 2years A2 with value of $2 million and duration of 6 years A3 with value of $1 million and duration of 8 years The liability includes: L1 with value of $4 million and duration of 20 years L2 with value of $2 million and duration of 30 years What is the duration of the company's asset portfolio in years? 4.33

6.45

0.03

23.33

0.014

14.65

10.31