Given an interest rate of 10% per year, what is the value today of a perpetual stream of $3,000 annual payments that begins in one year?
Perpetuity value $_____
Given an interest rate of 10% per year, what is the value today of a perpetual stream of $3,000 annual payments that begins today?
Perpetuity value $_____
Given an interest rate of 5 percent per year, what is the value at date t = 7 of a perpetual stream of $3,400 payments that begins at date t = 15?
Perpeuity value $_____