5. OLL Ltd has just issued a perpetual (that is, non-maturing) financial security that is expected to pay an annual coupon of $120 next year. This coupon will then decline at a rate of 2% per annum forever. If the interest rate on this security is 8% p.a., its price today should be closest to:

Group of answer choices

$1,200.

$1,500.

$2,000.

$6,000.