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Dante purchase two perpetuities, X and Y , that have the exact same value to him today: - Perpetuity X will pay him $ 1
Dante purchase two perpetuities, X and Y that have the exact same value to him today: Perpetuity X will pay him $ every years, with the first payment years from today. Perpetuity Y will pay him $Cy every years, with the first payment year from today. Dante views both payments as equally risky and so uses the same effective annual rate of to discount both assets. What is the value of Perpetuity Ys cash flow, $Cy The correct answer is one of the choices: A $ B $ C $ D $ or E $
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