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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