Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 106

Alpha Technologies is offering a financial instrument to Alfred that promises to pay $2,500 per year for 25 years, beginning one year from now. Alfred requires an annual rate of return of 8%. The question is, what is the maximum price that he will be prepared to pay?

. Thus the value of the payments is: