A Government has issued two bonds: Bond A will pay a coupon of 100 on 1 January next year, and which will then pay coupons on 1 january every year thereafter tforever, with the coupon increasing by 39 every year. Bond B will pay a fixed annual coupon each year (forever), with the coupon being paid on 1 January each year. Assume that the appropriate discount rate for both bonds is 8% in annualized terms if it is now January 2, and both bonds have the same current price, what is the coupon of Bond B?

Options

A 175

B 200

C 160

D. 133