SOA Exam FM Sample Question 31
Study guide: Exam FM-2
A common stock pays a constant dividend at the end of each year into perpetuity.
Using an annual effective interest rate of 10%, calculate the Macaulay duration of the stock.
- A) 7 years
- B) 9 years
- C) 11 years
- D) 19 years
- E) 27 years
Answer this question and see the worked solution