(Round your response to the nearest penny.) ds are expected to change to 10%, what is the current yield on this same bond assuming that you paid is %. (Round your response to the nearest integer.) nd in exactly one year, having paid $2,000, and received exactly one coupon payment, what is your total return if competing yields a is %. (Round your response to two decimal places.)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%?
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
$2,000?
The current yield is
%. (Round your response to the nearest integer.)
If you sell this bond in exactly one year, having paid $2,000, 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.)
Transcribed Image Text:How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%? 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 $2,000? The current yield is %. (Round your response to the nearest integer.) If you sell this bond in exactly one year, having paid $2,000, 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.)
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