Given that the expected return on a perpetuity (ic) is equal to the expected yearly payment (C) divided by the price of the perpetuity (Pc), we can can determine the expected return by solving Exp Return on Perpetuity.png and arrive at the market value (price) given the expected yearly payment (C) and required return (ic) by solving Market Value of Perpetuity.png Assuming then we have a perpetuity (consol) with an expected yearly payment of $90 selling at a market price (Pc) of $800, solve for the consol bond's required return (ic).

(State your solution in percentage form rounded to the nearest one-hundredth of one-percent: X.XX%.)