How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or

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How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or 20 years?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 07:56 AM

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How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or

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Duration can be thought of as a weighted average of the maturities of the cash flows paid to ...View the full answer

Investments

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