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Cylon Co . offers a security for sale that pays an annual $ 2 0 0 payment forever, while market interest rates are 9 %

Cylon Co. offers a security for sale that pays an annual $200 payment forever, while market interest rates are 9%. Explain how to calculate using finance calculator (BA II) and what to enter to get results.
a. What is this security worth today?
b. If the annual payment of $200 grows at a rate of 5% every year, what is the security worth?
c. If market interest rates increase, what will happen to the current value of the security? Show an example.

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