Question
6) A perpetuity consists of quarterly payments. The first 3 payments of each year are $1 but the last payment each year is $2. The
6) A perpetuity consists of quarterly payments. The first 3 payments of each year are $1 but the last payment each year is $2. The effective quarterly interest rate is j. Show that the present value of this perpetuity is (1/j) * (1 + 1 / s4|j).
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
5th Edition
0072339160, 978-0072339161
