Which of the following factors is fixed and thus cannot change for a specific perpetuity?
A) PV of a perpetuity
B) Cash payment of a perpetuity
C) Interest rate on a perpetuity
D) Discount rate of a perpetuity

Question

Quizplus · Accepted Answer

The cash payment of a perpetuity is fixed and cannot change. The PV, interest rate, and discount rate can all change depending on factors such as market conditions and the issuer's creditworthiness.

Which of the Following Factors Is Fixed and Thus Cannot