Question: Question # 1 A perpetuity pays $ 2 0 , 0 0 0 a year beginning one year from now. The discount rate is 8

Question #1
A perpetuity pays $20,000 a year beginning one year from now. The discount rate is 8% per year. What is the present value of perpetuity?
Question #2
A company has a 7% coupon bond that matures in 15 years. The bond pays interest semiannual. The bond has a face value of $1000, and the yield to maturity is 9% What is the value of the bond?

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