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:

Commissions

Earnings based on a percentage of the sale price of goods or services, typically used as compensation for sales personnel.

Implied Authority

Authority of an agent that is not explicitly granted but rather inferred from the nature of the job or previous conduct between the agent and the principal.

Partnership Property

Assets or property owned by a partnership, as opposed to personal property owned by the individual partners.

Nature Of The Business

Describes the fundamental operations and activities in which a business is engaged.