Find the present value of this perpetuity assume interest


The payments of a perpetuity immediate begin with one dollar at the end of year one. Each subsequent payment is 2.5% higher than the preceding one. The Macaulay duration of this perpetuity is given as 42 years. Find the present value of this perpetuity. Assume interest rates for all maturities are the same, i.e., the yield curve is flat, and that annual effective interest rate is higher than 2.5% (otherwise the value of this perpetuity would be infinite).

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Financial Management: Find the present value of this perpetuity assume interest
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