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Question 27 A stock pays a dividend of 10 at time t = 1. The annual dividends in following years increase at a rate of
Question 27 A stock pays a dividend of 10 at time t = 1. The annual dividends in following years increase at a rate of 6% per year. If the effective annual interest rate is 8%, determine the modified convexity of this stream of payments. A 50 B 500 5,000 D 25,000 E 250,000
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