Question
The British government has a consol bond (perpetual bond) outstanding that pays 100 in interest each year. Assuming that the current interest rate in Great
The British government has a consol bond (perpetual bond) outstanding that pays 100 in interest each year. Assuming that the current interest rate in Great Britain is 5% and that you will receive your first interest payment one year from purchasing the consol bond, then the value of the consol bond is closest to:
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
