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Suppose the borrowing rate rB=10% compounded annually. However, the lending rate (or equivalently, the interest rate on deposits) is only 8% compounded annually. Compute the difference between the upper and lower bounds on the price of an perpetuity that pays A=10,000$ per year.
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In this assignment, we were required to solve 2 finance based problems along with the calculations. We solved the problems in excel sheet by stating formulae and also all amounts were calculated through formulas.
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