The King of France offers you an investment opportunity that would pay you $30 per year forever. If comparable investments offer yields to maturity of 4% annually, what is the fair price of this investment opportunity? O A $750 OB. $1200 O C. $3120 OD Impossible to determine, because it will be infinitoly large

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
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The King of France offers you an investment opportunity that would pay you $30 per year
forever. If comparable investments offer yields to maturity of 4% annually, what is the fair price
of this investment opportunity?
O A $750
O B. $1200
O C $3120
O D. Impossible to determine, because it will be infinitely large
Transcribed Image Text:The King of France offers you an investment opportunity that would pay you $30 per year forever. If comparable investments offer yields to maturity of 4% annually, what is the fair price of this investment opportunity? O A $750 O B. $1200 O C $3120 O D. Impossible to determine, because it will be infinitely large
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