The nominal market interest rate is 6 percent calculate the, Financial Management

The nominal market interest rate is 6 percent calculate the

Let's denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is ( Pb = l/r), where I is the annual net income the bond generates and r is the nominal market interest rate.

a. Suppose that a bond promises the holder $400 per year forever. The nominal market interest rate is 6 percent. Calculate the bond's current price: ?

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Financial Management: The nominal market interest rate is 6 percent calculate the

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Financial Management: The nominal market interest rate is 6 percent calculate the

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