Suppose that you will inherit a perpetuity that will pay a payment of 2000 every other year.
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Suppose that you will inherit a perpetuity that will pay a payment of 2000 every other year. The first payment will occur 10 years from now (end of year 10). If the discount rate is 10% annually, how much is this perpetuity worth today? What constant payment for the next 10 years would be equivalent to owning this perpetuity?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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