7. Suppose you are given a choice of the following two securities: (a) an annuity that pays $10,000 at the end of each of the next 6 years; or (b) a perpetuity that pays $10,000 forever, but the rst cash payment is 11 years from today. Which security do you choose if the annual interest rate is 5%? Does your answer change if the interest rate is 10%? Explain why or why not. 8. Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two years, starting two years from now and continuing forever