A consol bond is a bond oering a constant periodic interest payment forever. If a consol bond
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Question:
A consol bond is a bond o§ering a constant periodic interest payment forever. If a consol bond is priced to yield 5% and pays a dividend of $250 each year, what is its current value?
(a) $250.00
(b) $5000.00
(c) $12,500.00
(d) $1
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date: