6) (10 pts) Consider a hypothetical security that pays a continuous dividend over time according to D(t) D.(1 + t). Assu

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6) (10 pts) Consider a hypothetical security that pays a continuous dividend over time according to D(t) D.(1 + t). Assu

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6 10 Pts Consider A Hypothetical Security That Pays A Continuous Dividend Over Time According To D T D 1 T Assu 1
6 10 Pts Consider A Hypothetical Security That Pays A Continuous Dividend Over Time According To D T D 1 T Assu 1 (12.57 KiB) Viewed 30 times
6) (10 pts) Consider a hypothetical security that pays a continuous dividend over time according to D(t) D.(1 + t). Assuming a (constant) CC rate of interest, r, write a SIMPLIFIED expression for the present value and the duration of this security. If r = 10% what maturity ZC bond matches the duration?
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