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Suppose that you have invested in a perpetuity that pays $500 per year. Now, you forecast that the interest rate for the first 50 years
Suppose that you have invested in a perpetuity that pays $500 per year. Now, you forecast that the interest rate for the first 50 years to be 5%, but the interest rate will rise to 10% after the year 50. Whats the present value of this perpetuity with this information?
Give me the specific explanation plz
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