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How much would the bond sell for consol

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Reference no: EM132793017

problem 1: Consol is a bond with no maturity date/principal that pays coupon forever. A consol is selling at $1,200 with an interest rate of 5%. How much would this bond sell for if the interest rate were 8% instead?

A) $ 200.
B) $ 750.
C) $1,650.
D) $1,920.
E) Not enough info.

Reference no: EM132793017

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