Question
The British government has an outstanding perpetual bond (aka consol) paying $100 per month forever. Assuming an effective annual rate (EAR) of 4.0742%, the value
The British government has an outstanding perpetual bond (aka consol) paying $100 per month forever. Assuming an effective annual rate (EAR) of 4.0742%, the value of the bond immediately before a payment is made is closest to ________.
a.
$29,453
b.
$30,000
c.
$29,553
d.
$30,100
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
