1) How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 20%?

You would pay $ (Round your response to the nearest penny.)

2) If competing yields are expected to change to 15%, 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.)

3) 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 15%?

Your total return is %. (Round your response to two decimal places.)