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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 $ payment forever, while market interest rates are 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 $ grows at a rate of 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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