Valuing Perpetuities Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,200 monthly. The
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Valuing Perpetuities Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,200 monthly. The contract currently sells for $63,000. What is the monthly return on this investment vehicle? What js the APR the effective annual return?
PerpetuityPerpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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Here we need to find the interest rate that equates the perpetuity cash flows with the PV of ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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