Question: Suppore a $ 1 , 0 0 0 face value perpetuity bond pays $ 6 0 in interest each year. If the market interest rate

Suppore a $1,000 face value perpetuity bond pays $60 in interest each year. If the market interest rate rises to 8%, what will happen to the value of this bond?
It will rise to $1,333.
It will rise to $1,400.
It vill fall to 5800.
It will fall to $750.
Suppore a $ 1 , 0 0 0 face value perpetuity bond

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