Use the following statements to answer this question: I. The effective

Use the following statements to answer this question: I. The effective yield is generally easier to compute for a perpetuity than for a 10-year bond. II.

Two perpetuities that have the same annual payment must have the same price, even if the issuers of the bonds are different companies. A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II is false.

ANSWER

B