DexterOnline
Junior Member
- Joined
- Jan 29, 2015
- Messages
- 139
Given the interest rate is not used and is unknown, how would you find an equivalent annuity that costs the same as a lump-sum yet has the same yield (IRR).
Further how would you find a perpetuity that costs the same as an annuity yet has the same yield (IRR).
Code:
Lump sum
-10 0 0 0 0 0 0 0 0 0 15
Annuity
-10 ? ? ? ? ? ? ? ? ? ?
Further how would you find a perpetuity that costs the same as an annuity yet has the same yield (IRR).
Code:
Annuity
-10 2 2 2 2 2 2 2 2 2 2
Perpetuity
-10 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ...