3. Bond pricing: In class, we have discussed the pricing of bonds with finite maturity, deriving the bond formula (1 +r) (1 r) Here, B is the current bond price, T is the number of periods to maturity, r 0 is the per-period discount rate, C is the coupon payment, and P is the principal payment due at maturity. A variation of the bond is a perpetuity, which perpetually makes per-period coupon payments and thus never matures. It follows that the price of the perpetuity is