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You are looking at a perpetuity contract. It pays 1000 a month forever. The contract sells for $200,000. Questions: Whats the monthly return this contract?

You are looking at a perpetuity contract. It pays 1000 a month forever. The contract sells for $200,000.

Questions:

Whats the monthly return this contract?

Whats the APR?

Whats the Effective Annual Return (EAR)?

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