Which One of the Following Statements Is True Concerning the Duration

question 70

Multiple Choice

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

• A)The duration of 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 15% yield perpetuity that pays $200 annually.
• D)The duration of a perpetuity cannot be calculated.
• E)None of the above.

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Definitions:

Intuitionist Perspective

A philosophical viewpoint arguing that humans have an innate faculty that gives us an intuitive understanding of morality.

Moral Development

The process through which humans progress in their ability to reason about ethical and moral issues, often conceptualized through stages.

Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development which explains how a child constructs a mental model of the world.

Self-concepts

Refers to an individual's collection of beliefs about themselves, including attributes, who and what the self is.