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Price of a perpetual bond formula

Tags:  bonds pricing and analysis

Description of the Price of a perpetual bond formula

Formula for the calculation of the price of a perpetual bond.

Formula

\[ P = \frac{I}{r} \ \]

Symbols

\(I\ \)       
Nominal coupon rate
\(r\ \)       
Yield

Additional information related to this formula

Related definition from the glossary of financial terms

Perpetual bond

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