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:

Magic Bullet Theory

A media theory suggesting that mass media messages have a direct and powerful effect on the audience, like a bullet, without any interference in how the message is interpreted.

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The main means of mass communication (broadcasting, publishing, and the Internet) regarded collectively.

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A term used to describe organizations or individuals that carry out the directives and policies of the government, often in an authoritative or regulatory capacity.

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The transformation over time in the institutions, culture, and structure of society.