Which of the Following Statements Regarding Perpetuities Is FALSE

question 59

Multiple Choice

Which of the following statements regarding perpetuities is FALSE?

• A) A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.
• B) PV of a perpetuity = r C
• C) One example of a perpetuity is the British government bond called a consol.
• D) To find the value of a perpetuity one cash flow at a time would take forever.

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Definitions:

Reconstruction

The period after the American Civil War when the southern states were reintegrated into the Union and efforts were made to extend civil rights to freed slaves.

Presidential Election

The process by which the president of the United States is selected, involving nationwide votes and the Electoral College system.

Southern Republicans

Republicans residing in the Southern United States, historically significant for their role during the Reconstruction era and their political evolution over time.