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3. An investor is considering buying a perpetuity of $20,000 per year. The annual interest I is Uniform(0.01, 0.03) compounded annually. Let P denote the
3. An investor is considering buying a perpetuity of $20,000 per year. The annual interest I is Uniform(0.01, 0.03) compounded annually. Let P denote the present value of the perpetuity. What is E[P] if the perpetuity is a (i) perpetuity-immediate? (ii) perpetuity-due? 3. An investor is considering buying a perpetuity of $20,000 per year. The annual interest I is Uniform(0.01, 0.03) compounded annually. Let P denote the present value of the perpetuity. What is E[P] if the perpetuity is a (i) perpetuity-immediate? (ii) perpetuity-due
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