Conejo co*sep/dec17*

Hi Moffat a_ can i show working for new bond like this,if yes how i use this for other part(b) Macaulay duration based on annual coupon of $5·57 [($5·57 x 1·0220–1 x 1 year) + ($5·57 x 1·0251–2 x 2 years) + ($5·57 x 1·0284–3 x 3 years) + ($5·57 x 1·0325–4 x4 years) + ($105·57 x 1·0362–5 x 5 years)]/$149.93(pv of casflow) = 4·6 years b_i dont understand the logic behind this Macaulay duration based on fixed annual repayments of interest and capital: Annuity factor: (3·57%, 5 years) = (1 – 1·0357–5)/0·0357 = 4·51 approximately Annual payments of capital and interest required to pay back new bond issue = $100/4·51 = $22·17 per $100 bond approximately [($22·17 x 1·0220–1 x 1 year) + ($22·17 x 1·0251–2 x 2 years) + ($22·17 x 1·0284–3 x 3 years) + ($22·17 x 1·0325–4x 4 years) + ($22·17 x 1·0362–5 x 5 years)]/$100 = [21·69 + 42·20 + 61·15 + 78·03 + 92·79]/100 = 3·0 years c_ Shares for proposal one should be 240(i.e 400*60%(eq holders)) why in answer showing 280 instead of 240.