Suppose you could buy an annual bond that pays $72 coupon a year forever, and your required rate of return for this bond is 12%. To you, the present value of this bond would be closest to _____. Group of answer choices $60.00 $166.67 $600.00 $1,666.67
Suppose you could buy an annual bond that pays $72 coupon a year forever, and your required rate of return for this bond is 12%. To you, the present value of this bond would be closest to _____. Group of answer choices $60.00 $166.67 $600.00 $1,666.67
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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Suppose you could buy an annual bond that pays $72 coupon a year forever, and your required
Group of answer choices
$60.00
$166.67
$600.00
$1,666.67
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