Perpetual Life Corp. has issued con sol bonds with coupon payments or $60. (Con sols pay interest forever and never mature. They are perpetuities.) If the required rate of return on these bonds at the time they were issued was 6 percent. at what price were they sold to the public!

Perpetual Life Corp. has issued con sol bonds with coupon payments or $60. (Con sols pay interest forever and never mature. They are perpetuities.) If the required rate of return on these bonds at the time they were issued was 6 percent. at what price were they sold to the public!

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Perpetual Life Corp. has issued con sol bonds
with coupon payments or $60. (Con sols pay
interest forever and never mature. They are
perpetuities.) If the required rate of return on
these bonds at the time they were issued was 6
percent. at what price were they sold to the
public!

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