9. Assuming an interest rate of 10% calculate the present value of the following streams of yearly payments: a) 1,000 euro per year forever, with the first payment already done, b) 1,000 euro per year forever, with the first payment one year from today, c) 2,420 euro per year forever, with the first payment three years from today.
9. Assuming an interest rate of 10% calculate the present value of the following streams of yearly payments: a) 1,000 euro per year forever, with the first payment already done, b) 1,000 euro per year forever, with the first payment one year from today, c) 2,420 euro per year forever, with the first payment three years from today.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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9. Assuming an interest rate of 10% calculate the
a) 1,000 euro per year forever, with the first payment already done,
b) 1,000 euro per year forever, with the first payment one year from today, c) 2,420 euro per year forever, with the first payment three years from today.
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