The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest

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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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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:01 AM

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The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest

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Corporate Finance

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