Question: (b) We are currently at year 0. Consider a perpetuity that pays $250 at the end of each odd year and $150 at the end

(b) We are currently at year 0. Consider a perpetuity that pays $250 at the end of each odd year and $150 at the end of each even year. The term structure is flat at 10% per year. Determine the present value of the perpetuity
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