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13) A perpetuity that pays $125 at the end of each year costs $625 today. a) What is the implied rate of return on this
13) A perpetuity that pays $125 at the end of each year costs $625 today. a) What is the implied rate of return on this investment? b) If the payments of the perpetuity were made at the beginning of each year, what is the implied rate of return on this investment? ha Krishnaswami Lecture Notes Page 2 of 4
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Advanced Finance Theories
Authors: Ser-Huang Poon
1st Edition
9814460370, 978-9814460378
