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4. Consider a perpetuity that pays $1,000 per year; the market rate of interest is 10%. What is the PV of the perpetuity? What is

4. Consider a perpetuity that pays $1,000 per year; the market rate of interest is 10%. What is the PV of the perpetuity? What is the PV of the perpetuity three years from now? What is the PV of the perpetuity 20 years from now? Under what circumstances does the value of the perpetuity change?

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