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What is the present value of $5,000 paid each year forever, assuming a discount rate of 5% and the first payment occurs one year from
What is the present value of $5,000 paid each year forever, assuming a discount rate of 5% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 5% to generate an annual payment of $5,000 forever? Please round your answer to the nearest hundredth
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Dynamic Asset Allocation With Forwards And Futures
Authors: Abraham Lioui , Patrice Poncet
1st Edition
0387241078,038724106X
