A perpetual bond pays a coupon of 25 per year if in year 1
A perpetual bond pays a coupon of $25 per year.
a. If in year 1 this bond sells for $200, what is its yield to maturity?
b. If interest rates move to 20% next year, what will this bond sell for?
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a perpetual bond pays a coupon of 25 per yeara if in year 1 this bond sells for 200 what is its yield to maturityb if
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