Question: How much would you pay for a perpetuity that pays $17,417 once a year if you require a 8% rate of return? Answer to

How much would you pay for a perpetuity that pays $17,417 once

How much would you pay for a perpetuity that pays $17,417 once a year if you require a 8% rate of return? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the answer. A bond has a real return of 3.7 percent and the expected inflation rate is 1.5 percent. What is the bond's nominal rate of inflation? Answer in percent to 2 decimal places and do not include the % sign. For example, if the answer is 2.04%, you should enter 2.04 in the answer.

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a 15764750 b 520 Explanation a To calculate the price of a perpetuity you can use the formula P ... View full answer

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