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UPH provides a retirement plan to its employees that gives out $800 a year forever, with the first payment starting next year. Assume i=8.6%. (a)

UPH provides a retirement plan to its employees that gives out $800 a year forever, with the first payment starting next year. Assume i=8.6%.

(a) Calculate the present value of this retirement plan.

(b) Suppose that the market yield rate decreases by 0.6%, what is the absolute exact change in the present value?

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