PV of a complex perpetuity. a. (10 points) Calculate the PV of the following perpetuity: $1 at period 1,$.5 at period 2, \$2 at period 3,$.25 at period 4,$4 at period 5,$.125 at period 6 etc., continuing in this pattern forever (assume electronic payments in which any fractional amount can be paid), at the discount rates (all expressed as EAR): 10% p.a., 30% p.a., and 50% p.a. b. (10 points) At what discount rates is the PV of the perpetuity in question a. finite? c. (10 points) Calculate the PV of the following perpetuity: $.5 at period 1,$1 at period 2 , $.25 at period 3,$2 at period 4,$.125 at period 5,$4 at period 6 etc., continuing in this pattern forever (assume electronic payments in which any fractional amount can be paid), at the discount rates (all expressed as EAR): 10% p.a., 30% p.a., and 50% p.a. PV of a complex perpetuity. a. (10 points) Calculate the PV of the following perpetuity: $1 at period 1,$.5 at period 2, \$2 at period 3,$.25 at period 4,$4 at period 5,$.125 at period 6 etc., continuing in this pattern forever (assume electronic payments in which any fractional amount can be paid), at the discount rates (all expressed as EAR): 10% p.a., 30% p.a., and 50% p.a. b. (10 points) At what discount rates is the PV of the perpetuity in question a. finite? c. (10 points) Calculate the PV of the following perpetuity: $.5 at period 1,$1 at period 2 , $.25 at period 3,$2 at period 4,$.125 at period 5,$4 at period 6 etc., continuing in this pattern forever (assume electronic payments in which any fractional amount can be paid), at the discount rates (all expressed as EAR): 10% p.a., 30% p.a., and 50% p.a