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Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 3 and the interest rate is 10%, which

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Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 3 and the interest rate is 10%, which of the following is right about its present value at time zero? a. $9.09 b. $8.15 c. $10.00 d. $8.26 e. None of the above

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