se 1: Conversion of interest rates and perpetuity e given that the semiannual interest rate is 5%. a. Compute the equivalent annual interest rate. b. Using the annual interest rate computed in step a) above, what is the present value at time t=0 of a perpetuity that pays annual cash-flows of 100mlUSD starting from time t=3 ? c. Derive the formula for the present value of a growing perpetuity, with first cash-flow paid one period from now, and where cash-flows grow at a constant growth rate g at every period. [Hint: watch the video on the derivation of the perpetuity formula, and try to incorporate the fact that cash-flows are growing at a constant rate]