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Question 13 A perpetual bond is a bond that pays a fixed coupon forever. Adam, a first-year undergraduate student argues that this is like a
Question 13 A perpetual bond is a bond that pays a fixed coupon forever. Adam, a first-year undergraduate student argues that this is like a preferred stock. Assuming that there is a preferred stock and a perpetual bond. If the perpetual bond pays coupon annually and the annual coupon is the same as the preferred dividend, the preferred stock and the perpetual bond should have the same price. Discuss if this is true or false
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