An investor purchasing a British consol is entitled to receive annual payments from the British government forever.
Question:
An investor purchasing a British consol is entitled to receive annual payments from the British government forever. What is the price of a consol that pays $ 150 annually if the next payment occurs one year from today? The market interest rate is 4.6 percent.
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The time line is A consol is a perp...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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