Question: Consider a 30-year bond that pays $50 at the end of Years 129 and $1,050 at the end of Year 30. If the appropriate discount

Consider a 30-year bond that pays $50 at the end of Years 1–29 and $1,050 at the end of Year 30. If the appropriate discount rate is 5 percent per year, what is a fair price for this bond?

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ANSWER To calculate the fair price of the bond we need to calculate the present value of all the fut... View full answer

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