Revision as of 11:39, 20 November 2023 by Admin (Created page with "'''Solution: C''' The size of the dividend does not matter, so assume it is 1. Then the duration is <math display = "block"> \frac{\sum_{t=1}^{\infty}tv^t}{\sum_{t=1}^{\infty}v^t} = \frac{(Ia)_{\overline{\infty}|}}{a_{\overline{\infty}|}} = \frac{\ddot a_{\overline{\infty}|}/i}{1/i} = \frac{1/(di)}{1/i} = \frac{1}{d} = \frac{1.1}{0.1} =11. </math> {{soacopyright | 2023 }}")
Exercise
Nov 20'23
Answer
Solution: C
The size of the dividend does not matter, so assume it is 1. Then the duration is
[[math]]
\frac{\sum_{t=1}^{\infty}tv^t}{\sum_{t=1}^{\infty}v^t} = \frac{(Ia)_{\overline{\infty}|}}{a_{\overline{\infty}|}} = \frac{\ddot a_{\overline{\infty}|}/i}{1/i} = \frac{1/(di)}{1/i} = \frac{1}{d} = \frac{1.1}{0.1} =11.
[[/math]]
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