48. Perpetuities. A local bank advertises the following deal: Pay us $100 a year for 10 years...

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48. Perpetuities. A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the inter- est rate available on other deposits is 6%? (LO3)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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Question Posted: Jul 31, 2024 09:01 AM

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48. Perpetuities. A local bank advertises the following deal: Pay us $100 a year for 10 years...

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Fundamentals Of Corporate Finance

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