Question
A perpetuity pays 540 dollars annually. At the time of the second payment, the present value of the entire perpetuity (including the first payment) is
A perpetuity pays 540 dollars annually. At the time of the second payment, the present value of the entire perpetuity (including the first payment) is 6600 dollars. What is the smallest possible effective rate of interest?
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
