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A. This bond represents an infinite number of payments. Why is the value of this bond NOT infinite? ish pounds B. If investors discount the
A. This bond represents an infinite number of payments. Why is the value of this bond NOT infinite? ish pounds B. If investors discount the promised payments by 10%, what is the value of this bond? Exp C. If the fortunes of Britain deteriorate because of Brexit and the Pandemic and investors now believe that the promised payments are riskier than before, will the value of this bond increase/decreaseot change? [You do not need to provide a calculation; just assess whether there will be an increase/decreaseo change and, of course, state the reasons underlying your answer.]
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