Question
Bob buys a perpetuity that pays $20 at the end of each year with the first payment occurring 2 years from now for $329.08. He
Bob buys a perpetuity that pays $20 at the end of each year with the first payment occurring 2 years from now for $329.08. He could have purchased a perpetuity that pays $X at the end of each 6 months, starting 6 months from now that earns the same effective annual rate. Find $X.
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
0471361909, 978-0471361909
