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Please Do not copy the answer from the website. Question: You just inherited a trust that will pay you $200,000 per year in perpetuity. However,
Please Do not copy the answer from the website.
Question: You just inherited a trust that will pay you $200,000 per year in perpetuity. However, the first payment will not occur for exactly three more years. Assuming a 8.5% annual interest rate, what is the value of this trust today? Explain the concept of perpetuity and also provide example of any company that has issued perpetual security.
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