A perpetuity has an original face value

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A perpetuity has an original face value of $1,000.00 and original yield of 6%.

(a)  What is the promised, annual, coupon payment? $60

(b) If it is priced to yield 5%, what is that price? $1,200.00

(c)  If its price is $1,200.00, what is its yield? 5.00%

Reference no: EM131500944

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