What is the prevailing interest rate if a perpetual bond were to pay $100,000 per year beginning

Question:

What is the prevailing interest rate if a perpetual bond were to pay $100,000 per year beginning next year and costs $1,000,000 today?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: