Consider a mortgage loan where the periodic payment is 1 and the per period mortgage interest is 5%. For simplicity, the maturity of the loan is infinite. That is, the borrower has to pay the loan...

Extracted text: Consider a mortgage loan where the periodic payment is 1 and the per period mortgage interest is 5%. For simplicity, the maturity of the loan is infinite. That is, the borrower has to pay the loan perpetually. The per period market interest rate is 10%. Calculate the market value of the loan. (Note: When an investor buys the loan, she can receive the value of one starting from the next period.)