How much would you pay for a perpetual bond that pays an


How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 5%? You would pay If competing yields are expected to change to 10%, what is the current yield on this same bond assuming that you paid $4,000 The current yield is If you sell this bond in exactly one year, having paid 4,000, and received exactly one coupon payment, what is your total return if competing yields are 10%? Your total return is.

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Financial Management: How much would you pay for a perpetual bond that pays an
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