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Eternity Insurance is selling a perpetuity contract that pays $1,250 monthly. The contract currently sells for $75,000. a. Calculate the monthly rate of return on

Eternity Insurance is selling a perpetuity contract that pays $1,250 monthly. The contract currently sells for $75,000.

a. Calculate the monthly rate of return on this investment.

b. Calculate the APR.

c. Calculate the effective annual rate.

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