Question
A perpetuity pays $190 per year and interest rates are 8.4 percent. How much would its value change if interest rates increased to 9.9 percent?
A perpetuity pays $190 per year and interest rates are 8.4 percent. How much would its value change if interest rates increased to 9.9 percent? (Round your answer to 2 decimal places.)
Did the value increase or decrease?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
