Question: Derive an expression for the value and duration of a perpetuity of $c per annum if interest rates are level at r %? The following

Derive an expression for the value and duration of a perpetuity

Derive an expression for the value and duration of a perpetuity of $c per annum if interest rates are level at r %? The following sums of infinite series might prove useful for your solution: x + x2 + x3 +...= 1-x x + 2x2 + 3x3 +... = (1-x)

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