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A perpetual bond pays a coupon rate of 6% per annum. The alternative to buying the perpetual bond is an 8%, 20 year, corporate bond.
A perpetual bond pays a coupon rate of 6% per annum. The alternative to buying the perpetual bond is an 8%, 20 year, corporate bond. What would be the price of the perpetual bond?
| $500.00 | ||
| $750 | ||
| $567.69 | ||
| $666.67 |
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AQA AS Accounting Unit 2 Financial And Management Accounting
Authors: Brendan Casey
1st Edition
1500684260?, 978-1500684266
