Show that the duration of a perpetuity increases as the interest rate decreases, in agreement with Rule

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Show that the duration of a perpetuity increases as the interest rate decreases, in agreement with Rule 4.

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ISE Essentials Of Investments

ISBN: 9781265450090

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Nov 18, 2023 11:30 PM

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Show that the duration of a perpetuity increases as the interest rate decreases, in accordance with Rule 4. Rule 4: With other factors held constant, the duration and interest rate sensitivity of a...
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Show that the duration of a perpetuity increases as the interest rate decreases, in agreement with Rule

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ISE Essentials Of Investments

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