Question
Forever Insurance Company has offered to pay you or your heir $100 per year at the end of each year forever. If the correct discount
Forever Insurance Company has offered to pay you or your heir $100 per year at the end of each year forever. If the correct discount rate for such a cash flow is 13%, what is the amount that you would be willing to pay Forever Insurance for this set of perpetuity? If the discount rate rose to 22%, what happen to the value of this perpetuity? (4 marks)
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Shipping Finance A Practical Handbook
Authors: Stephenson Harwood
4th Edition
1787421406, 978-1787421400
