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Consider an increasing perpetuity with the first payment equaling $10 and each successive payment increased by $10. The present value (price function) 10 10 of

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Consider an increasing perpetuity with the first payment equaling $10 and each successive payment increased by $10. The present value (price function) 10 10 of this annuity at interest rate i is P() 101-1 + 107-2. Determine the value of the modified convexity at a yield (interest) rate of i = 8.0% 2 + i 1603.77 1171.09 891.20 699.07 563.64

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