What is the value of this investment if your annual


As a graduation present your parents give you a Lilliputian bond. You won't receive the first payment, however, for 7 more years. After the first payment, the bond will pay as a perpetual stream of $2000 annual payments. What is the value of this investment if your annual discount rate is 6%?

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Financial Management: What is the value of this investment if your annual
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