You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 10%. If the bond initially costs $4,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)
You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 10%. If the bond initially costs $4,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 17P
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