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    jalupinya's Avatar
    jalupinya Posts: 4, Reputation: 1
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    #1

    Oct 21, 2007, 05:16 AM
    Consol Bonds
    . Consol Bonds. Perpetual Life Corp. has issued consol bonds with coupon payments of $60.
    (Consols pay interest forever and never mature. They are perpetuities.) If the required rate of return on these bonds at the time they were issued was 6 percent, at what price were they sold to the public? If the required return today is 10 percent, at what price do the consols sell?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Oct 21, 2007, 05:38 AM
    Hello j:

    I never did homework when I was in school. I'm certainly not going to do YOURS.

    excon
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