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Formulas for calculating annuities, perpetuities and present value are used to determine the current fair market price for both bonds and stocks. Explain the process

Formulas for calculating annuities, perpetuities and present value are used to determine the current fair market price for both bonds and stocks. Explain the process used to establish the price for each of these investments and briefly discuss what factors would affect the accuracy of the price obtained from these calculations.

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