Question: Intro A security pays $800 every 8 years forever. The appropriate discount rate is 7% (EAR). WARNING: This problem can't be solved just by plugging
Intro A security pays $800 every 8 years forever. The appropriate discount rate is 7% (EAR). WARNING: This problem can't be solved just by plugging numbers into your calculator. The cash flows aren't annual, and the first one doesn't necessarily occur one period from now! You have to map it out! Part 1 Attempt 1/2 for 10 pts. What is the value of the security if the first payment occurs 5 years from now? 0+ decimals
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