Question :-Federal Bank is issuing a growing perpetual bond with a face value of Rs. 1000. The interest amount for the first year is Rs. 40 and the interest amount will increase by 0.25% every year subsequently. What is the fair value of bond?
(A). Rs. 1000.00
(B). Rs. 1066.67
(C). Rs. 1666.67
(D). Infinity
Please tell the correct answer with explanation. and I will mark correct answer as brainliest.
Answers
Answered by
3
Answer:
A) 1000.00,...................
Answered by
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Hiiii
Your answer is
1000
Hope it will help you
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