Question
What is the value of a perpetual bond with an annual coupon of $100 if its required rate of return is 9%? 11% 3%? Assess
What is the value of a perpetual bond with an annual coupon of $100 if its required rate of return is 9%? 11% 3%? Assess the following statement: "Because perpetual bonds match an infinite investment horizon, they have little interest rate price risk."
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
