Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
19th Edition
ISBN: 9780134478760
Author: Roger LeRoy Miller
Publisher: PEARSON
Question
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Chapter 16, Problem 2P
To determine

The current price of the bond with given annual net income and interest rate

Concept introduction:

Non-Maturing Bond- A non-maturing bond, consol or perpetuity or perp is a non-redeemable bond with no maturity date. These bonds are treated as equity, not debt and pay a steady stream of interest payments forever.

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