Question
Sarah owns a perpetual bond that makes yearly payments. The first payment is $540, which she will get one year from today. The coupon grows
Sarah owns a perpetual bond that makes yearly payments. The first payment is $540, which she will get one year from today. The coupon grows at 1.6% per year, and the discount rate is 8.2%. What is Sarah's bond worth?
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
