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Jim buys a perpetuity of 100 per year, with the first payment one year from now. The price for the perpetuity is 975.61, based on
Jim buys a perpetuity of 100 per year, with the first payment one year from now. The price for the perpetuity is 975.61, based on a nominal yield of (2) compounded semiannually. Immediately after the second payment is received, the perpetuity is sold for $1, 642.04, to earn for the buyer a nominal yield of ;(2) compounded semiannually. Calculate the difference 2(2) ;(2)
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