An investor purchasing a British consol is entitled to receive annual payments from the British government forever.

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An investor purchasing a British consol is entitled to receive annual payments from the British government forever. What is the price of a consol that pays $125 annually if the next payment occurs one year from today? The market interest rate is 3.9 percent.

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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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