If the APR is 12%, but there is weekly compounding, what is the periodic rate?If you buy
Question:
If the APR is 12%, but there is weekly compounding, what is the periodic rate?If you buy a security that will pay you 2,000 every year forever, and the appropriate rate of interest is 3.5%, what is the fair value of such security?
If you were to receive a dividend one year from now of $56, and such dividend will grow 3% a year after that and you expect to receive such dividends forever, what's a fair price of such income stream assuming that the applicable rate of interest is 8%?
If you are offered to purchase a constant perpetuity for $155,000 today, and the appropriate rate of interest is 9%, what is the recurring annual payment that you expect to receive?
If you are offered to buy a constant perpetuity that pays $250 a year for $5,000, what is the appropriate interest rate?