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jason buys a consol (perpetual bond) that pays out a fixed cash flow of $750,000 every year,forever, starting at the end of this year. if
jason buys a consol (perpetual bond) that pays out a fixed cash flow of $750,000 every year,forever, starting at the end of this year. if the current market rate is 12.5%, what is the PV of the cash flows?
A) $6,000,000
B) $750,000
C) $843,750
D) $600,000
E) 7,500,000
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