Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 115

Let us consider a financial instrument that promises to pay $2,500 per year for ever. If investors require a 10% rate of return, the maximum amount they would be prepared to pay may be computed as follows.

Thus, although the cash flows are infinite, the security has a finite value. This is because the contribution of additional cash flows to the present value becomes insignificant after a certain point in time.