Stealing @Jesse_Livermore's poll: The US Treasury issues an noncallable, nonputtable perpetual bond paying out the nominal SPX dividend in dollars as its coupon. Where does this security trade relative to SPX itself?
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Depends on whether the prospectus says it pays (nominal SPX dividend) or (nominal SPX dividend yield x face value). If the former it will trade in the same range as SPX. If the latter much higher.