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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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