What is the present value of perpetuity

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Reference no: EM132017745

1. A perpetuity will make annual payments with the first payment coming 9 years from now. The first payment is for $4700, and each payment that follows is $150 dollars more than the previous one. If the effective rate of interest is 6.2%, what is the present value of the perpetuity?

2. Mackmyra Svensk Whisky AB, a Swedish company, plans to issue bonds in Canada to raise 250 million Canadian dollars. This issue is which of the following?

A. euro bond

B. foreign bond

C. Swedish domestic bond

D. Canadian domestic bond

Reference no: EM132017745

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