Question
A prestigious investment bank designed a new security that pays a quarterly dividend of $4.20 in perpetuity. The first dividend occurs one quarter from today.
| A prestigious investment bank designed a new security that pays a quarterly dividend of $4.20 in perpetuity. The first dividend occurs one quarter from today. |
| What is the price of the security if the stated annual interest rate is 5.3 percent, compounded quarterly? |
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
