Question 1 (3 points): A biannual perpetuity pays $10,000 every two years. It was issued last year, so, it will make its next payment 1 year from now, second payment 3 years from now, and so on in perpetuity. The annual semi-annually compounded interest rate is 8%. Find the price of this perpetuity

All interest rates are annual interest rates with semi-annual compounding unless specified otherwise. All coupon rates are annual coupon rates paid semi-annually unless specified otherwise.