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A perpetual bond that pays cash flow annually was worth $1200 last year with an interest rate of 2%. Now the interest rate has changed
A perpetual bond that pays cash flow annually was worth $1200 last year with an interest rate of 2%. Now the interest rate has changed to 5%, what is this perpetual bond worth today? (Hint: first figure out what is the annual cash flow. Use perpetuity) $800 $750 $480 $1200
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