Multiple Choice
Calculate the present value of a government security that promises to pay $100 p.a.forever,assuming an interest rate of 11% per annum.
A) $90
B) $1100
C) $909
D) Infinity.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q37: The calculation that expresses the ratio of
Q38: An annuity in which the first cash
Q39: The distinguishing feature of an annuity due
Q40: What is the present value of $500
Q41: Suppose you deposited $250 at the end
Q43: An annuity in which the first cash
Q44: Assume that you will require $1000 in
Q45: You have borrowed $1000 from a friend
Q46: The nominal interest rate is difference between
Q47: An individual borrowed $100 000 at a