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Yes, but they never repaid it. They have just been paying out the interest.

ah thanks, I think I get it now.

"heritable annuity" is the perpetual interest. "until repayment" threw me off.

75/1200 = 6.25% though.

Where does the 2.5% interest rate quoted in the article come from?

Not sure. From other comments, it sounds like that's an adjustment that they made later.