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you saved 351,000 to establish a perpetuity. if your financial institution will pay you 11,000 per...

you saved 351,000 to establish a perpetuity. if your financial institution will pay you 11,000 per year forever what is the effective yield on the perpetuity?
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Answer #1

PV of Perpetuity = – PV = Present Value D = Dividend or Coupon per period r = discount rate

11000 351000 =

r = 11000/351000

r = 3.13%

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