You expect to receive $100 at the end of each year that is a multiple of 2 or 3, so, for example, the first 6 payment years would be 2, 3,4,6, 8,9. If the appropriate discount rate is 10% per year, what is the value of this strange perpetuity?
You expect to receive $100 at the end of each year that is a multiple of 2 or 3, so, for example, the first 6 payment years would be 2, 3,4,6, 8,9. If the appropriate discount rate is 10% per year, what is the value of this strange perpetuity?
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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You expect to receive $100 at the end of each year that is a multiple of 2 or 3, so, for example, the first 6 payment years would be 2, 3,4,6, 8,9. If the appropriate discount rate is 10% per year, what is the value of this strange perpetuity?
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