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Using an annual effective interest rate of 10%, find the annual Modified Duration of a perpetuity-due that makes annual payments with the first payment being

Using an annual effective interest rate of 10%, find the annual Modified Duration of a perpetuity-due that makes annual payments with the first payment being 100 and each subsequent payment being 3% larger than the previous payment.

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Mathematical Interest Theory

Authors: Leslie Jane, James Daniel, Federer Vaaler

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