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You win the Console Lottery. They payoff is a growing console bond. That means that the bond will pay you $100,000 next year and the
You win the Console Lottery. They payoff is a growing console bond. That means that the bond will pay you $100,000 next year and the payment will grow a 3.5% per year forever. If your required return is 8%, what is the value of the bond to you today?
a) $1,250,000 b) $2,857,143 c) $100,000 d $2,222,222
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