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John has invested into a bond which pays him coupon payment for an infinite period...

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Finance

John has invested into a bond which pays him coupon payment for an infinite period of time. This bond pays John $100 every year. If we assume that the discount rate is 4%, how much John should pay for this bond?

a. 100

b. 25000

c. 10000

d. 2500

Answer & Explanation Solved by verified expert
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