The market interest rate is 325 percent per annum


An investor purchasing an Australian Government Bond is entitled to receive annual payments from the Australian government forever. What is the price of a Government Bond that pays $90 semi-annually if the next payment occurs six months from today? The market interest rate is 3.25 percent per annum, compounding semi-annually.

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Finance Basics: The market interest rate is 325 percent per annum
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