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A perpetuity-immediate has payments of 10 at the end of year 1,12 at the end of year 2 , and
level payments of 14 at the end of each year thereafter. Calculate the duration of the perpetuity if
the annual effective interest rate is 6%.

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A perpetuity-immediate has payments of 10 at the end of year 1,12 at .pdf

  • 1. A perpetuity-immediate has payments of 10 at the end of year 1,12 at the end of year 2 , and level payments of 14 at the end of each year thereafter. Calculate the duration of the perpetuity if the annual effective interest rate is 6%.