You have decided to buy a perpetual bond. The bond makes one payment at the end of

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You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 8%. If the bond initially costs $500, what is the payment every year?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 11, 2024 01:04 AM

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You have decided to buy a perpetual bond. The bond makes one payment at the end of

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Corporate Finance

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