please show all work for 2&3 and do not use excel, thank you so much!...
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please show all work for 2&3 and do not use excel, thank you so much!
2. Find the fair price of a perpetuity. The perpetuity pays $9,800 per year, with the first payment in 4 years. Your required rate of return is 7%. 3. Flo's Inc plans to issue new 10-year bonds with semi-annual coupons. Its existing outstanding 12% semi-annual coupon bonds maturing in 5 years currently sell for $973.55. If the financial intermediaries wanted to the new bonds to sell at par at issuance, what coupon rate would these new bonds carry
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