Question
Consider an annual perpetuity due with initial payment of $100, and amounts increasing by a factor of 3% each year and, in parallel, decreasing by
Consider an annual perpetuity due with initial payment of $100, and amounts increasing by a factor of 3% each year and, in parallel, decreasing by a factor of 2% every two years.
Find the present value of this perpetuity at time 0, if the effective annual interest rate is 4% throughout.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
