What is your total return competing yields

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How much would you pay for a perpetual bond that pays an annual coupon of ?$50 per year and yields on competing instruments are 5?%? You would pay ?$____. ?(Round your response to the nearest penny.?)

If competing yields are expected to change to 10?%, what is the current yield on this same bond assuming that you paid ?$1,000?? The current yield is ____%. ?(Round your response to the nearest? integer.)

If you sell this bond in exactly one? year, having paid ?$1,000?, and received exactly one coupon? payment, what is your total return if competing yields are 10?%? Your total return is ___?%.? (Round your response to two decimal places.?)

Reference no: EM131973146

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