Answered

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TIBB offers a perpetuity that pays end-of-year annual payments of $120,000 forever. The present value of this contract is $1,900,000 today. What is the interest rate implied in this contract?
a) 6.32%
b) 5.86%
c) 4.29%
d) 4.45%
e) 6.15%

Sagot :

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