Business, 24.11.2020 20:10 brookealexis5768

Recall British Consols first issued in 1700s are considered perpetuities. If a British Consol will pay 100 GBP annually starting one year from now and interest rate is 5%. Required:
a. What is this asset worth today?
b. If interest rate is always 5%, what is the asset worth 3 year from now?
c. Does the asset appreciate or depreciate in value?
d. Do you have any return if you are holding an asset that does not change in value? What is your rate of return?

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Recall British Consols first issued in 1700s are considered perpetuities. If a British Consol will p...

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