Question
A Municipal Bond (MUNI) pays $166.66 per year forever. If the appropriate interest rate is 7.25%, how much will pay to buy this instrument? A.
A Municipal Bond (MUNI) pays $166.66 per year forever. If the appropriate interest rate is 7.25%, how much will pay to buy this instrument?
| A. | $1,666.67
| |
| B. | impossible to compute, we need to know the investment horizon. | |
| C. | $1,324.89
| |
| D. | $1,011.87
| |
| E. | $2,298.76
|
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Value Investing
Authors: Mike Hartley
1st Edition
979-8864443309
