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Two growing perpetuities have the same yield rate. The first perpetuity-a perpetuity-immediate-has an initial payment of $2,000 one year from now, and each subsequent annual
Two growing perpetuities have the same yield rate. The first perpetuity-a perpetuity-immediate-has an initial payment of $2,000 one year from now, and each subsequent annual payment increases by $100. The present value of this first perpetuity is $10,000.
The second perpetuity-also a perpetuity-immediate-has a present value of$6,000, an initial payment of$500 one year from now, and each subsequent annual payment increases by g%. Find g.
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