Answered: A bond that pays interest forever and…

A bond that pays interest forever and has no maturity date is a perpetual bond. How is the yield to maturity on such a bond determined?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3Q: A bond that pays interest forever and has no maturity date is a perpetual bond, also called a...

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