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A consol bond is a bond oering a constant periodic interest payment forever. If a consol bond is priced to yield 5% and pays a

A consol bond is a bond o§ering a constant periodic interest payment forever. If a consol bond is priced to yield 5% and pays a dividend of $250 each year, what is its current value?

(a) $250.00

(b) $5000.00

(c) $12,500.00

(d) $1

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