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Trenton is considering the purchase of a perpetuity (a consol bond) from the Govement. The loan payments of 200 per year and is currently selling
Trenton is considering the purchase of a perpetuity (a consol bond) from the Govement. The loan payments of 200 per year and is currently selling for 3000. What is the annual cost of capital of this loan?
A. Answer does not exist
B. 0%
C. 6.25%
D.6.67%
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