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In this video, we explain Perpetuity and Growing Annuities. Start your free trial: Perpetuity and Growing Why would a government choose to issue a perpetuity, which requires payments forever, instead of a terminal loan, such as a To calculate the Net Present Value within Excel call the "NPV" function: NPV(discount_rate,cashflow1:cashflow5) +

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In finance, a perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence. 00:00 Learning outcome and introduction 00:48 Annuities 03:19 Illustration 10:23 Example 1 32:22 Example 2 37:35 Example 3 A perpetual subordinated loan is a type of junior debt that continues indefinitely and has no maturity date.

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Present Value and Perpetuity Formulas The present value of a perpetuity (an infinite stream of cash flows) is calculated by dividing the periodic cash flow by the discount

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