Henry owns a perpetual bond with yearly payments of $3,658. The discount rate for this bond...
Henry owns a perpetual bond with yearly payments of $3,658. The discount rate for this bond is 0.060. What is a fair price for Henry's bond?
Homework Answers
| PV of perpetual CF = Perpetual CF/(interest rate) |
| PV of perpetual CF = 3658/(0.06) |
| PV of perpetual CF = 60966.67 |
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Henry owns a perpetual bond with yearly payments of $3,658. The
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