Question: 1 ) Consider a coupon bond that has a par value of $ 9 0 0 and a coupon rate of 1 0 % .

1) Consider a coupon bond that has a par value of $900 and a coupon rate of 10%. The bond is currently selling for $966.00 and has 2 years to maturity. What is the bond's yield to maturity(YTM)?
The yield to maturity is?
2)What is the price of a perpetuity that has a coupon of $40 per year and a yield to maturity of 2.5%?
The price of the perpetuity is $___
3) A bond has a face value of $1000 and an 8% coupon rate, its current price is $940, and it is expected to increase to $960 next year.
The current yield is ___%
4) How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%?
You would pay $____

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