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6. You currently own a level perpetuity making $1,000 payments every year. Your friend Proposition Joe offers to purchase it from you, and pay for
6. You currently own a level perpetuity making $1,000 payments every year. Your friend Proposition Joe offers to purchase it from you, and pay for it with 5 equal yearly payments, the first of which to happen a year from now. If the interest (discount) rate is 5%, what is the minimum yearly payment that Proposition Joe has to offer for you to accept? A. 3620.0 B. 4312.5 C. 4503.5 D. $4619.5
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A Guide To Starting Your Hedge Fund
Authors: John Thompson, Erik Serrano Berntsen
1st Edition
0470519401, 978-0470519400
