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You are offered a chance to buy a perpetuity that will pay $95 dollars a year. The prevailing borrowing rate is 10%. What would you

  1. You are offered a chance to buy a perpetuity that will pay $95 dollars a year. The prevailing borrowing rate is 10%. What would you be willing to pay for the perpetuity? Show your work

  1. Calculate the value of a 30 year annuity that pays you $10 with a prevailing borrow rate of 6.2%. Please show your work

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