The Duration of a Perpetuity with a Yield of 8

question 12

Multiple Choice

The duration of a perpetuity with a yield of 8% is

• A) 13.50 years.
• B) 12.11 years.
• C) 6.66 years.
• D) Cannot be determined

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Definitions:

Substantial

Of considerable importance, size, or worth; significant.

Performance

The action or process of carrying out or fulfilling a task, agreement, or expectation.

Partial

Incomplete or not whole; often refers to payments, information, or actions that are not fully completed.

Express

Express refers to a mode of communication or transportation that is fast and direct.