Suppose that all possible types of perpetuities (differentiated in payment starting periods and payment amounts) are tr

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answerhappygod
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Suppose that all possible types of perpetuities (differentiated in payment starting periods and payment amounts) are tr

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Suppose that all possible types of perpetuities
(differentiated in payment starting periods and payment
amounts) are traded at fair prices in the market. In this
circumstance, could you find a fair price of all types of
annuities?
Justify your answer as follows: If you can, explain how
you value an annuity using the market prices of perpetuities.
Otherwise, provide an annuity that you cannot value using the
market prices of perpetuities.
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