What is the current price of a security that pays its owner $1,000 per year into perpetuity
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What is the current price of a security that pays its owner $1,000 per year into perpetuity if the interest rate is 5 percent? The interest rate is 8 percent? What is the percent change in its price when the interest rate goes from 5 to 8 percent?
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The price of a perpetuity which is a type of bond that pays interest ...View the full answer
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Related Book For 
Financial Markets Banking And Monetary Policy
ISBN: 9781118872239
1st Edition
Authors: Thomas D. Simpson
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