Disney enterprises issued 7.55% senior debentures (bonds) on July 15, 1993, with a 100-year maturity (ie due on July 15, 2093). Suppose an investor purchased one of these bonds on July 15, 2003 for $1,050.

A. Determine the yield to maturity (nearest 1/100 of 1%) using the valuation formula for a bond with a finite maturity (Equation 6.5)

B. Determine the yield to maturity (nearest 1/100 of 1%) using the valuation formula for a perpetual bond (Equation 6.8)

C. Explain why the answers to parts a and b are the same.