Question
The British government has a consol bond outstanding paying pound 400 per year forever. Assume the current interest rate is 8 % per year. a.
The British government has a consol bond outstanding paying pound 400 per year forever. Assume the current interest rate is 8 %
per year.
a. What is the value of the bond immediately after a payment is made?
The value of the bond immediately after a payment is made is _____
(Round to the nearest pound.)
b. What is the value of the bond immediately before a payment is made?
The value of the bond immediately before a payment is made is _____
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
