3 ms·
Do you mean the duration is infinite in the bond-market sense of the word (i.e. sensitivity of cash flows to interest rates)? In that case, a perpetuity still
by tdees40 11y ago
Do you mean the duration is infinite in the bond-market sense of the word (i.e. sensitivity of cash flows to interest rates)? In that case, a perpetuity still has finite duration.
The maturity, of course, is infinite.
- murbard2 11y agoYou are absolutely correct. I initially wrote maturity then changed to duration, and forgot to correct the sentence. I now have.