Determine the price of the bond

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Question - Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. Determine the price of the bond.

Reference no: EM133047102

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Determine the price of the bond : Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. Determine the price of the bond
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