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Calculate the Macaulay duration D(.06,) and the modified duration D(.06, 1) of a stock that pays annual dividends forever, assuming that the first dividend, payable
Calculate the Macaulay duration D(.06,) and the modified duration D(.06, 1) of a stock that pays annual dividends forever, assuming that the first dividend, payable in exactly one year, is $100 and then, each subsequent dividend is 2% more than the previous one.
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