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The Canadian (imminent has once again decided to issue a consol (a bond with a never-ending interest payment and no mutant) date I. the bond
The Canadian (imminent has once again decided to issue a consol (a bond with a never-ending interest payment and no mutant) date I. the bond will pay $50 in interest each year (al the end of the year) hut nacre return the principal. the current discount rate for Canadian government bonds is 6 51 What should this bond sell for in the market? What if the interest rate should fall to 4.5 percentage? What if the interest rate should rise to 8.5 percentage? Why does the price go up when interest rates fall? Why does the price go down when interest rates rise
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