Equivalent to owning this perpetuity

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Reference no: EM131884453

Suppose that you will inherit a perpetuity that will pay an annual payment of $1000. The first payment will occur 10 years from now (end of year 10). If the discounted rate is 5% APR, how much is the perpetuity worth today? What constant payment for the next 10 years would be equivalent to owning this perpetuity?

Reference no: EM131884453

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