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What is the value of bond immediately after payment is made

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Reference no: EM132908875

The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 4% per year.

Problem a. What is the value of the bond immediately after a payment is? made?

Problem b. What is the value of the bond immediately before a payment is? made?

Reference no: EM132908875

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