Question
A bond that pays interest forever and has no maturity date is a perpetual bond. How is the yield to maturity on such a bond
A bond that pays interest forever and has no maturity date is a perpetual bond.
How is the yield to maturity on such a bond determined?
Instructions:
A) Proper equation (formula) on how to determined the perpetual bond on yield to maturity.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
