A(n)____ is a financial instrument that agrees to pay an equal amount of money per period into the indefinite future (i.e. forever).
A)imbedded annuity
B)annuity due
C)sinking fund
D)perpetuity

Question

Quizplus · Accepted Answer

A perpetuity is a type of financial instrument that agrees to pay an equal amount of money per period into the indefinite future. It differs from an ordinary annuity, which has a set period of time for payments. Examples of perpetuities include bonds that have no maturity date and stocks that pay a fixed dividend indefinitely.

A(n)____ Is a Financial Instrument That Agrees to Pay an Equal