Question
You have been offered a security that will give you payments forever. The payments are as follows (all amounts are received at the end of
You have been offered a security that will give you payments forever. The payments are as follows (all amounts are received at the end of the year):
- Years 1-5: $200 per year
- Years 6-8: $300 per year
- Year 9 onwards: $350 per year
What is the most you can pay for this security and still make your 10% required rate of return?
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Strategic Public Finance
Authors: Stephen Bailey
1st Edition
0333922212, 978-033392221
