# Question: What will be the rate of return on a perpetual

What will be the rate of return on a perpetual bond with a $1,000 par value, an 8 percent coupon rate, and a current market price of?

(a) $600,

(b) $800,

(c) $1,000,

(d) $1,500?

Assume that interest is paid annually.

(a) $600,

(b) $800,

(c) $1,000,

(d) $1,500?

Assume that interest is paid annually.

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