1. Assume some party is offering to sell you the right to receive payments in the amount of $1000 each month indefinitely into the future, and expected the typical prevailing annual interest rate to be 3.25%. What should you be willing to pay for this right?

2, Consider the case where an annual payment of will be received indefinitely into the future, and initial cost for the privilege of receiving these payments is . What is the IRR for this cash flow?