Multiple Choice
Which one of the following statements is true concerning the duration of a perpetuity?
A) The duration of a 15% yield perpetuity that pays $100 annually is longer than that of a 15% yield perpetuity that pays $200 annually.
B) The duration of a 15% yield perpetuity that pays $100 annually is shorter than that of a 15% yield perpetuity that pays $200 annually.
C) The duration of a 15% yield perpetuity that pays $100 annually is equal to that of a 15% yield perpetuity that pays $200 annually.
D) The duration of a perpetuity cannot be calculated.
Correct Answer:
Verified
Correct Answer:
Verified
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