The British government has a consol bond outstanding paying 200 per year forever. Assume the current interest

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The British government has a consol bond outstanding paying £200 per year forever. Assume the current interest rate is 12% per year.

a. What is the value of the bond immediately after a payment is made?

b. What is the value of the bond immediately before a payment is made?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 24, 2024 11:01 PM

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The British government has a consol bond outstanding paying 200 per year forever. Assume the current interest

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Corporate Finance The Core

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