You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5%. If the bond initially costs $3,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)

You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 5%. If the bond initially costs $3,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has
an interest rate of 5%. If the bond initially costs $3,000, what is the payment every year?
The payment at the end of each year is $
(Round to the nearest dollar.)

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