What is the Macaulay duration of an increasing perpetuity-IMMEDIATE where the first payment is $100 and each subsequent payment will be 10% higher than the one before it. The interest rate is 12%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the Macaulay duration of an increasing perpetuity-IMMEDIATE where
the first payment is $100 and each subsequent payment will be 10% higher
than the one before it. The interest rate is 12%.
Transcribed Image Text:What is the Macaulay duration of an increasing perpetuity-IMMEDIATE where the first payment is $100 and each subsequent payment will be 10% higher than the one before it. The interest rate is 12%.
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