Question
A perpetuity of $500 per year will begin 2 years from today. If the interest rate on this security is 6%, what would be its
A perpetuity of $500 per year will begin 2 years from today. If the interest rate on this security is 6%, what would be its value or price today?
a) $6,997 b) $8,333 c) $7,862 d) $7,417
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
