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Moon s friend, lives in Greece and planning on moving to Germany, owns a perpetuity that promises to pay 1 , 0 0 0 at
Moons friend, lives in Greece and planning on moving to Germany, owns a perpetuity that promises to pay at the end of each year, forever. Moon received an email from her friend and she offered to sell Moon all of the payments to be received after the th year for a price of
At an interest rate of should Moon pay the today to receive payment numbers and onwards?
A
No the perpetuity is worth today for
B
No the perpetuity is worth today for
C
Yes.
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