Question
The investment offers two options: An annuity that pays $250,000 per year for 20 total payments. The first payment is received today. A lump sum
The investment offers two options:
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An annuity that pays $250,000 per year for 20 total payments. The first payment is received today.
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A lump sum that pays $X today.
What value $X makes you indifferent between the two options? Assume the correct discount rate is 6%.
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
