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Question 4 Assume that Perpetuity 1 has cash flows in Years 1 through infinity and a value at Year 0 of $6,000.00, while Perpetuity 2
Question 4 Assume that Perpetuity 1 has cash flows in Years 1 through infinity and a value at Year 0 of $6,000.00, while Perpetuity 2 has equivalent cash flows in Years 31 through infinity and a value at Year 30 also of $6,000.00. Also assume that a 30-Year annuity with equivalent cash flows in Years 1 through 30 has a present value of $5,403.74 at Year 0. Given this information, determine the nominal, annual interest rate that is being used in this problem. 08.00% O 7.75% O 7.50% O 7.25% 0.15 pts O 8.25%
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