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U.S. companies occasionally issue 100- year debt (bonds). This seems to be irrational – who would buy the bonds (lend the company $1000 per bond) and not expect to get the money back for 100 years? To get a better feel for the risk involved, answer this question. What is the present value of $1,000 expected to be received in 100 years if the discount rate is 8 percent??

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