A local bank advertises the following deal: Pay us $100 a year for 10 years and then

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A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the interest rate available on other deposits is 6%?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:10 AM

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A local bank advertises the following deal: Pay us $100 a year for 10 years and then

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Fundamentals of Corporate Finance

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