If an N Year Security Recovered the Same Percentage of Its

question 43

Multiple Choice

If an N year security recovered the same percentage of its cost in PV terms each year,the duration would be

• A)N.
• B)0.
• C)sum of the years/N.
• D)N!/N2.
• E)None of these choices are correct.

---

Definitions:

Repairs

The process of fixing or restoring something that is broken or damaged to bring it back to a functional or working condition.

Hydraulic Car Smasher

A machine designed to compress and destroy vehicles or large metal objects using hydraulic pressure.

Marginal Cost

The cost incurred by producing one additional unit of a product.

Dispose of Cars

The method of disposing of unwanted or obsolete vehicles by means such as recycling, selling, or scrapping.