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An insurance company must make a payment of $19,487 in eight years. The market interest rate is 8%, so the present value of the obligation

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An insurance company must make a payment of $19,487 in eight years. The market interest rate is 8%, so the present value of the obligation is $10,000. The company's portfolio manager wishes to fund the obligation using two-year zero-coupon bonds and perpetuities paying annual coupons. (We focus on zeros and perpetuities to keep the algebra simple.). what's the duration of the perpetuity asset

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