Determine the interest rate of a perpetuity

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1. Determine the interest rate of a perpetuity with a price of $500 and an annual interest payment of $25

2. What is the return on a 5 percent coupon bond that initially sells for $1000 and sells for $1200 next year

3. Your uncle advices you to purchase long-term bonds because their interest rate is 15%. Should you follow his advice

Reference no: EM132564821

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