A perpetuity is an annuity where the payments

A) stop at maturity.
B) are delayed until maturity.
C) increase due to inflation.
D) never stop.
E) accrue until maturity.

Answer: D

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The conversion factor on a deliverable bond is 1.03 and the bond price is 100.50. The observed futures price is 97.5 and the YTM is 5.8%. What is invoice less market price on the security?

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