Iscount rate to assess the present value of cash flow steam

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Assess a 100 year bond by considering a $100,000,000 30 year issue with a 5% rate. The present value of this cash flow stream is $100,000,000, using a 5% discount rate. Suppose you use 5% as the discount rate to assess the present value of the cash flow stream of the 100 year issue. How many years would it take to reach $100,000,000 in present value?

Reference no: EM131050105

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