Question
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 8%. If the bond initially costs 4000$, what is the payment every year?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
