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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
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 and include the ANSWER to each question please. 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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