Find what is the present value of a perpetual stream

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Problem 1. Given an interest rate of 12% per year, what is the present value of a perpetual stream of $1,000 payments with the first payment beginning in 4 years?

Problem 2. Play Store Co. issued 10-year bonds one year ago at a coupon rate of 2.4%. The bonds make monthly payments. If the YTM on these bonds is 4.8%, what is the current bond price?

Reference no: EM132794056

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