Which of the Following Statements Regarding Perpetuities Is FALSE

question 31

Multiple Choice

Which of the following statements regarding perpetuities is FALSE?

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

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Definitions:

Amplitude

In the context of waves, it is the height of the wave, which can determine the intensity or loudness of a sound.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Pitch

In acoustics, it is the quality of a sound governed by the rate of vibrations producing it; the degree of highness or lowness of a tone.

Primary Colors

The set of colors that can be combined to create a wide spectrum of colors but cannot be created by mixing other colors. Typically red, blue, and yellow in pigment or red, green, and blue in light.