23. The formula for the duration of a perpetual bond that makes an equal payment each year...

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23. The formula for the duration of a perpetual bond that makes an equal payment each year in perpetuity is (1 ⫹ yield)/yield. If each bond yields 5%, which has the longer duration—a perpetual bond or a 15-year zero-coupon bond? What if the yield is 10%?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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