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

Economics

How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 20%? You would pay ___?

If competing yields are expected to change to 12?%, what is your expected capital gain? (or loss)?

The expected capital gain? (or loss) is ?$___?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91720296

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