39. Perpetuities and continuous compounding (S2.4) If the interest rate is 7% compounded annually, what is the
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39. Perpetuities and continuous compounding (S2.4) If the interest rate is 7% compounded annually, what is the value of the following three investments?
a. An investment that offers you $100 a year in perpetuity with the payment at the end of each year.
b. A similar investment with the payment at the beginning of each year.
c. A similar investment with the payment spread evenly over each year.
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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