The principality of lower freedonia issues perpetual bonds, Finance Basics

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The principality of lower freedonia issues perpetual bonds

Question: 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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Finance Basics: The principality of lower freedonia issues perpetual bonds

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Finance Basics: The principality of lower freedonia issues perpetual bonds

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