Question: FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid monthly 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 monthly and the initial dividend will be paid one month from today. What is the price of the security if the stated annual interest rate is 5.5 percent, compounded monthly?

Possible answers:

$458.33
$2181.82
$181.82

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