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Dodge Inc. has recently issued a bond that will pay $ 1 0 0 every year forever ( with the first payment occurring 1 year

Dodge Inc. has recently issued a bond that will pay $

100

every year forever

(

with the first payment occurring

1

year from now

) .

If the interest rate for a bond like this is

8 %,

what is a present value of the interest payments this bond will pay?

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