15. Consol Bonds. Perpetual Life Corp. has issued consol bonds with coupon payments of $60. (Consols pay

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15. Consol Bonds. Perpetual Life Corp. has issued consol bonds with coupon payments of $60. (Consols pay interest forever and never mature. They are perpetuities.) If the required rate of return on these bonds at the time they were issued was 6%, at what price were they sold to the public? If the required return today is 10%, at what price do the consols sell? (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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