Question: This question is not cumulative [ 8 marks ] ( a ) Perpetual Corp. has issued consol bonds with annual coupon payments of $ 5
This question is not cumulative
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a Perpetual Corp. has issued consol bonds with annual coupon payments of $ If the required rate of return on these bonds at the time they were issued was percent, at what price were they sold to the public? If the required return today is percent, at what price do the consols sell?
b A pure discount bond has years until maturity and will pay $ at maturity. If the YTM is what is the current price of this pure discount bond?
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