Question: Question 18 (TVM - Calculation) (2 Marks) The 'vanilla' perpetuity pays $5 at the end of every year in perpetuity. The yearly effective interest rate

Question 18 (TVM - Calculation) (2 Marks) The 'vanilla' perpetuity pays $5 at the end of every year in perpetuity. The yearly effective interest rate is 15\%. What would be the payment of an 'alternative' perpetuity having the same present value as the 'vanilla' perpetuity, but only making a payment at the end of every 4 years in perpetuity? Hint: As an example, the 'alternative' perpetuity will make no payments in years 1,2,3,5,6,7 etc., Select one: a. $2.08 b. $5.29 c. $20.00 d. $23.77 e. $24.97 Question 19 (Bond - Calculation) ( 2 Marks) coupon and a face value of $1,000, which is quoted at 99.95%. The last semi-annual coupon payment was made on June 30,2022 . Choose the closest option: a. $101.17 b. $999.5 c. $1,000 d. $1,011.58 $1,023,83

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