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You have been offered a security similar to a British consol, which has payments that never end. In this case, the security offered to you
You have been offered a security similar to a British consol, which has payments that never end. In this case, the security offered to you just paid an annual coupon of $100. You would not receive this payment. These coupons will grow by 3% annually, and the first one you will receive is one year from today. Securities of comparable risk carry a return of 7%. What is a fair price
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