Question: How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 10%?
How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 10%? You would pay $(Round your response to the nearest penny) If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid $8002 The current yield % (Round your response to the reareat integer) w you sell this bond in exactly one year having pald $800 and received exactly one coupon payment, what is your total return il competing yields are 8%? Your total return is 1% (Round your response to two decimal places)
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