Find the duration $D$ and the modified duration $D_{M}$ of a perpetual annuity that pays an amount

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Find the duration $D$ and the modified duration $D_{M}$ of a perpetual annuity that pays an amount $A$ at the beginning of each year, with the first such payment being 1 year from now. Assume a constant interest rate $r$ compounded yearly.

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Investment Science

ISBN: 9780199740086

2nd Edition

Authors: David G. Luenberger

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Question Posted: Apr 19, 2024 02:00 AM

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Find the duration $D$ and the modified duration $D_{M}$ of a perpetual annuity that pays an amount

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Investment Science

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