What is the price of a perpetuity that has a coupon of $50 per year and a yield to maturity of 2 5 If the yield to maturity doubles, what will happen to its price ...

What is the price of a perpetuity that has a coupon of $50 per year and a

Question:

What is the price of a that has a of $50 per year and a yield to of 2.5%? If the yield to doubles, what will happen to its price?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...