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QUESTION 5 = 10 + i 10 2 Consider an increasing perpetuity with the first payment equaling $10 and each successive payment increased by $10.

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QUESTION 5 = 10 + i 10 2 Consider an increasing perpetuity with the first payment equaling $10 and each successive payment increased by $10. The present value (price function) of this annuity at interest rate i is P(1) convexity at a yield (interest) rate of i = 6.0% 107-1 + 107-2. Determine the value of the modified 1603.77 1171.09 891.20 699.07 563.64

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