Question
The British government has a consol bond outstanding paying (pounds) 100 per year forever. Assume the current interest rate is 4 % per year. a.
The British government has a consol bond outstanding paying (pounds) 100 per year forever. Assume the current interest rate is 4 % per year.
a. What is the value of the bond immediately after a payment is made?
b. What is the value of the bond immediately before a payment is made?
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
