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Old 11-20-2017, 11:09 PM
Futon Futon is offline
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Join Date: Jul 2016
Studying for FM
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Quote:
Originally Posted by Gandalf View Post
Either is fine. Thinking of the every year case, you can do either:

perpetuity-due = perpetuity-immediate + 1
or
perpetuity-due = (perpetuity-immediate)(1+i).

Neither formula is more right than the other.
Thank you
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