Bond promises to Pay holder $9.5 annually forever, the bond is selling for 95, you plan on

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Bond promises to Pay holder $9.5 annually forever, the bond is selling for 95, you plan on selling in 7 years from now if similar interests yield 2% at that line the bond is worth = $?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 14, 2023 02:44 AM

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Bond promises to Pay holder $9.5 annually forever, the bond is selling for 95, you plan on

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To calculate the current value of the perpetual bond we can use the formula PV C r where PV ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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