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Suppose you could buy an annual bond that pays $72 coupon a year forever, and your required rate of return for this bond is 12%.
Suppose you could buy an annual bond that pays $72 coupon a year forever, and your required rate of return for this bond is 12%. To you, the present value of this bond would be closest to _____.
a. $60.00
b. $166.67
c. $600.00
d. $1,666.67
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