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British government 4% perpetuities pay £4 interest each year forever Another bond, 2.5% perpetuities, pays £250 a year forever What is the value of 4% perpetuities if the long-term interest rate

British government 4% perpetuities pay £4 interest each year forever. Another bond, 2.5% perpetuities, pays £2.50 a year forever. a. What is the value of 4% perpetuities if the long-term interest rate is 6%? b. What is the value of 2.5% perpetuities?

Apr 02 2020 Read more Less More

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