Which One of the Following Statements Is True Concerning the Duration

question 79

Multiple Choice

Which one of the following statements is true concerning the duration of a perpetuity?

• A) The duration of a 15% yield perpetuity that pays $100 annually is longer than that of a 15% yield perpetuity that pays $200 annually.
• B) The duration of a 15% yield perpetuity that pays $100 annually is shorter than that of a 15% yield perpetuity that pays $200 annually.
• C) The duration of a 15% yield perpetuity that pays $100 annually is equal to that of a 15% yield perpetuity that pays $200 annually.
• D) The duration of a perpetuity cannot be calculated.

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Definitions:

Stable Patterns

Repeated, consistent behaviors or structures in a system or society that show little change over time.

Impression Management

The process by which individuals attempt to control the impressions others form of them, especially in social interactions and presentation of self.

Rational Choice

A theory in economics and sociology that suggests individuals always make prudent and logical decisions, aiming to maximize personal benefit.

Charles Derber

An American sociologist and author known for his work on environmental sustainability, economic inequality, corporate power, and globalization.