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Let's denote the price of a nonmaturing bond (called a consol) as P. The equation that indicates this price is P generates and r
Let's denote the price of a nonmaturing bond (called a consol) as P. The equation that indicates this price is P generates and r is the nominal market interest rate. = where I is the annual net income the bond a. Suppose that a bond promises the holder $200 per year forever. The nominal market interest rate is 4 percent. Calculate the bond's current price: $ (Round your answer to the nearest whole dollar.)
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