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Suppose a perpetual bond has been issued at par 1000 with coupon interest payment 60.00 Now 10 years after issue the required rate falls to

  1. Suppose a perpetual bond has been issued at par 1000 with coupon interest payment 60.00 Now 10 years after issue the required rate falls to 4%. What is the current value / price of this bond?

  1. 1,000
  2. 35
  3. 1400
  4. 70

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