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What is the value of 47 perpetuities if the long-term

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British government 4.7% perpetuities pay £4.7 interest each year forever. Another bond, 3.2% perpetuities, pays £3.2 a year forever.

A.What is the value of 4.7% perpetuities if the long-term interest rate is 6.7%?

B.What is the value of 3.2% perpetuities?

Reference no: EM13486056

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