Bob is offered to buy a financial security that guarantees, Financial Management

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Bob is offered to buy a financial security that guarantees

Bob is offered to buy a financial security that guarantees to pay him $50 every 2 years forever. The annual interest rate is 8%.

(a) How much would he pay for it today if the first payment will be received today?

(b) How much would he pay for it today if the first payment will be received in 1 year?

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Financial Management: Bob is offered to buy a financial security that guarantees

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Financial Management: Bob is offered to buy a financial security that guarantees

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