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Which of the following statements about perpetuities is true?
  • a)
    The present value of perpetuity is finite    
  • b)
    Perpetuities have a fixed maturity date    
  • c)
    Perpetuities have a fixed coupon rate    
  • d)
    The future value of perpetuity is infinite
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements about perpetuities is true?a)The pre...
Perpetuities have an infinite duration, which means they continue indefinitely, leading to an infinite future value.
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Which of the following statements about perpetuities is true?a)The present value of perpetuity is finiteb)Perpetuities have a fixed maturity datec)Perpetuities have a fixed coupon rated)The future value of perpetuity is infiniteCorrect answer is option 'D'. Can you explain this answer?
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