What should the payment of the second perpetuity be

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Reference no: EM131547096

A perpuity of $1 each year with the first payment due immediately, has a present value of $40 at an annual effective rate of i%. The owner exchanges it for another perpetuity with the first payment due immediately and subsequent payments due at four-year intervals. What should the payment of the second perpetuity be, in order to keep the same interest rate (i%) and the same present value.

Reference no: EM131547096

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