4. Consider a coupon bond which has a $2,000 par value and a coupon rate of 20%. The bond is currently selling for $3,300 and has 16 years to maturity. Calculate the bond's yield to maturity. 5. You are willing to pay $35,250 now to purchase a perpetuity that will pay you and your heirs $2,500 each year, forever, starting at the end of this year. If the required rate of return does not change, how much would you be willing to pay if this were a 40-year, annual payment, ordinary annuity instead of perpetuity