Humm. I paid for the solution book, but this says no solution? Looking to see a solution for this problem. Please advise. Thanks!

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a perpetuity pays 1 every january 1 starting in 2020. The effective rate of interest will be i in odd numbered years and j in even-numbered years. Find an expression for the present value of the perpetuity on January 1, 2019.

The correct solution is Vj[1+Vi]*[1/(1-VjVi)] but i do not understand how this works. I know the formula to find the present value of a perpetuity is D/r, so i thought it would be .5[1/i+i/j] since each of the formulas for i and j are only half of the years. Please fix my logic here.

Contrary to the comment below there are no factors missing to solve this problem, granted you know the material. I provided the solution, which i found was based on a formula made specifically for even and odd year problems. I simply need someone who understands the material to give a step by step to get the solution with explanation if possible. Thanks in advance, it would be very helpful.

Finance

An investor's required real rate of return is 3% continuously compounded. The continuously compounded inflation rate for the next 2 years is known to be 2%. The investor makes a 2 year loan that has 10% probability of default, with an expected recovery of 25% in the event of default. What is the minimum continuously compounded interest rate that could be acceptable to this investor for this loan?

Solution : 535

Please help needed to understand the problem with the steps leading to the solution. Thanks.

whitesquirrel135

Answer one of the Essay Questions located at the end of Chapters 1-4 in Introduction to Business Law. Answer one question for each chapter. Each fully developed response (250-400 words) should include the following: A clear introduction and conclusion A thorough statement of the problem A thorough explanation of the solution to the problem Identify the chapter and question number you are answering. Solid academic writing is expected. 5.YoubeginworkatEverhappyCorp.atthebeginningofNovember.Onyourseconddayatwork,you wear a political button on your overcoat,supporting your choice for governor in the up coming election. Your boss glances at it and says,âGet that stupid thing out of this office or youâre history,chump.âYou protest that his statement (a)violates your constitutional rights and (b)uses a boring cliche. Are you right?

4.Annie and Bart are coworkers. In fact, they share a cubicle wall. Recently,they were involved in a fender-bender in the company parking lot .Each blames the other for the accident,and the two have stopped speaking. Would you advise them to try to settle their dispute through arbitration,mediation,or with a traditional lawsuit?Why?

graywildebeest705

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Humm. I paid for the solution book, but this says no solution? Looking to see a solution for this problem. Please advise. Thanks!

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