Given an interest rate of 6.1 percent per year, what is the value at Date t =

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Given an interest rate of 6.1 percent per year, what is the value at Date t = 7 of a perpetual stream of $ 2,500 annual payments that begins at Date t = 15?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:06 AM

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Given an interest rate of 6.1 percent per year, what is the value at Date t =

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The time line is To find the value of the perpetuity at T 7 we first need to use the PV o...View the full answer

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