The principality of lower freedonia issues perpetual bonds, Ask an Expert

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The Principality of Lower Freedonia issues perpetual bonds that pay $135 every 6 months forever. Assuming a discount rate of 3%, what would be the value of one of these bonds? What is another name for this kind of bond? Explain why this bond may bear more of a resemblance to a stock than other bonds?

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Financial Management, Finance

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