A) 4.25 years
B) 3.25 years
C) 5.25 years
D) 6.25 years
Correct Answer
verified
Multiple Choice
A) To find the value of a perpetuity by discounting one cash flow at a time would take forever.
B) A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.
C) PV of a perpetuity =
D) One example of a perpetuity is the British government bond called a consol.
Correct Answer
verified
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