The British government has a consol bond outstanding paying pound 400 per year forever. Assume the current

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The British government has a consol bond outstanding paying pound 400 per year forever. Assume the current interest rate is 8 % per year.

a. What is the value of the bond immediately after a payment ismade?

b. What is the value of the bond immediately before a payment ismade?

Posted Date: May 18, 2024 07:00 PM

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The British government has a consol bond outstanding paying pound 400 per year forever. Assume the current

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