How much are you willing to pay today for consol bonds if the interest rate is 5%

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How much are you willing to pay today for consol bonds if the interest rate is 5% compounded daily and the bond pays you 1000 pounds every year (starting right after you buy the bond) forever?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Jul 25, 2023 07:52 AM

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How much are you willing to pay today for consol bonds if the interest rate is 5%

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To calculate the value of the consol bonds we can use the formula for the present value of a pe... View the full answer

Fundamentals of Corporate Finance

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