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Calculate the present value of the following Perpetuities. Assume r=20%. A Perpetuity that only pays you in even years and the payment each year is
Calculate the present value of the following Perpetuities. Assume r=20%.
A Perpetuity that only pays you in even years and the payment each year is $100. That is, the you get $100 on year 2, year 4 and $0 on year 1, year 3 . (Hint: Change the payment period and use a new periodic rate)
A Perpetuity that pays you $300 when the number of year is odd and $400 when the number of year is even. That is $300 on year 1, year 3 and $400 on year 2, year 4 .
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