73. Perpetuities. British government 4% perpetuities pay 4 interest each year forever. Another bond, 2% perpetuities, pays

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73. Perpetuities. British government 4% perpetuities pay 4 interest each year forever. Another bond, 2% perpetuities, pays 2.50 a year forever. What is the value of 4% perpetuities if the long-term interest rate is 6%? What is the value of 2% perpetuities? (LO3)

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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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