Question
Consider a stream of cash flows, where you receive $2,000.00 per year for 20 years EXCEPT year 12 during which you receive only $1,000.00. If
Consider a stream of cash flows, where you receive $2,000.00 per year for 20 years EXCEPT year 12 during which you receive only $1,000.00. If the current market rate of interest is 7.200% (compounded annually), then what is the present value of this stream of uneven cash flows?
Please solve it using a single annuity formula.
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The Handbook Of Mortgage Backed Securities
Authors: Frank Fabozzi
6th Edition
0071460748, 978-0071460743
