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Don't use calculator show all working on paper 1. Given an interest rate of 12% per year, what is the present value of a perpetual

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Don't use calculator show all working on paper

1. Given an interest rate of 12% per year, what is the present value of a perpetual stream of $1,000 payments with the first payment beginning in 4 years? 2. Play Store Co. issued 10-year bonds one year ago at a coupon rate of 2.4%. The bonds make monthly payments. If the YTM on these bonds is 4.8%, what is the current bond price

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