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A firm wishes to issue a perpetual bond. The current interest rate is 8%. Next year, there is a 40% chance that the interest rate

A firm wishes to issue a perpetual bond. The current interest rate is 8%. Next year, there is a 40% chance that the interest rate will be 5% and a 60% chance that the rate will be 12%. What is the bond's value today if the coupon is set at $90?

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