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Basic Question 4 of 5

The modified duration of a perpetuity is ______.

A. (1 + r)/r
B. 1/r
C. r / (1+r)
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User Contributed Comments 1

User Comment
MrFortei Good test of concept
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)

CFA® 2024 Level I Curriculum, Volume 4, Module 11.