If a bond pays $1,000 per year in perpetuity (each year in the future), what will the

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If a bond pays $1,000 per year in perpetuity (each year in the future), what will the market price of the bond be when the long-term interest rate is 10 percent? What would it be if the interest rate were 5 percent?

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Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 06, 2023 10:01 AM

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If a bond pays $1,000 per year in perpetuity (each year in the future), what will the

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The price of a perpetuity is the present value of the stream ...View the full answer

Macroeconomics Private And Public Choice

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