Question: FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid quarterly and the initial dividend

FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid quarterly and the initial dividend will be paid one quarter from today. What is the price of the security if the stated annual interest rate is 6.5 percent, compounded quarterly?

$1625.00

$153.85

$615.38

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