A prestigious investment bank designed a new security that pays a quarterly dividend of $1.45 in perpetuity.
Question:
A prestigious investment bank designed a new security that pays a quarterly dividend of $1.45 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the annual percentage rate is 4.9 percent, compounded quarterly?
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The dividend payments are made quarterly so we must use the quarterly interest ...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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