An increase in interest rates will generally lower the Price of assets to see this calculate the

Question:

An increase in interest rates will generally lower the
Price of assets to see this calculate the percent value of the following two assets at interest rates of 5 percent,
10 percent, and 20 percent per year:
a. A yielding $100 per year
b. A Christmas tree that will sell for $50 one year from now
c. Explain why the price of the long-lived asset is more sensitive to interest-rate changes than the price of the short-lived asset.
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...