A bond that has a yield of 4 must have a price that is higer

A bond that has a yield of 4% must have a price that is higer than/lower than/equal to a stock that is a perpetuity.

Solution

A bond that has a yield of 4% must have a price that is lower than a stock that is a perpetuity.

Because a Bond will have a redemption date and time and will give 4% yield whereas stock will pay dividend to an investor in perpetuity making it an viable purchase to investor for long term income generating. Thus Investor will pay high price for Stock.