Business, 11.09.2019 01:10 tonio638

You are considering two perpetuities which are identical in every way, except that perpetuity a will begin making annual payments of $p to you two years from today while the first $p payment for perpetuity b will occur one year from today. it must be true that the present value of perpetuity: a) a is greater than that of b by $p. b) b is greater than that of a by $p. c) b is equal to that of perpetuity a. d) a exceeds that of b by the pv of $p for one year. e) b exceeds that of a by the pv of $p for one year.

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You are considering two perpetuities which are identical in every way, except that perpetuity a will...

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