Question
Compute the price of a $ 5,875 par value, 14 percent coupon consol, or perpetual bond (i.e., coupon interest payment is a perpetuity), assuming that
Compute the price of a $ 5,875 par value, 14 percent coupon consol, or perpetual bond (i.e., coupon interest payment is a perpetuity), assuming that the yield to maturity on the bond is 9 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
