Question
29 You own a bond issued by the Canadian Pacific railroad that promises to pay the holder $50 annually forever. You plan to sell the
29
You own a bond issued by the Canadian Pacific railroad that promises to pay the holder $50 annually forever. You plan to sell the bond 10 years from now. If similar investments yield 7% at that time, how much will the bond be worth in year 10 when you try to sell it?
| A. | $ 214.29 | |
| B. | $ 714.29 | |
| C. | $ 905.11 | |
| D. | $1,405.11 | |
| E. | None of the above |
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Finance Interview Guide Basic Finance Concepts For Investment Banking Private Equity And Other Finance Roles
Authors: Beta IIM Ahmedabad
1st Edition
B0BYGY8K4B, 979-8387108297
