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  3. 3a) derive an expression for the value and duratio

3a) Derive an expression for the value and duration of a perpetuity of $c per...

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Finance

3a) 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+...=x1-x

x+2x2+3x3+...=x(1-x)2

(7 marks)

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