Question: Consider a security that pays you $200 when the year number is odd and and $400 when the year number is even (including year 0),
Consider a security that pays you $200 when the year number is odd and and $400 when the year number is even (including year 0), starting at year 0 and lasting forever. Assuming annual interest rate of 10%, what is the year-0 value (i.e. present value) of this security? What is the year-15 value (i.e. future value) of this security?
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