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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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
4th Canadian edition
134724712, 134724713, 9780134779782 , 978-0134724713
