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Question 5 1 pts Henry owns a perpetual bond with yearly payments of $1,770. The discount rate for this bond is 0.069. What i

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Answer #1

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Yearly payment= $1,770

Discount rate= 6.9%

Present value of the perpetuity payment each year= annual payment/discount rate

= $1,770/ 0.069

= $25,652.1739.

Therefore, the fair price of the bond is $25,652,17.

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