14. The British government has a consol bond outstanding paying 100 per year forever. Assume the current
Question:
14. The British government has a consol bond outstanding paying £100 per year forever.
Assume the current interest rate is 4% 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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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780134475561
4th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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