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Having trouble with the following HW question, any help appreciated! How much would you pay for a perpetual bond that pays an annual coupon of

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Having trouble with the following HW question, any help appreciated!

image text in transcribed
How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 5%? You would pay $D. (Round your response Ito the nearestpenny} If competing yields are expected to change to 15%, what is the current yield on this some bond assuming that you paid $1 05? The current yield is 1% {Round your response to the nearest integen) If you sell this bond in exactly one year, having paid $1,600. and received exactly one cou pon payment1 what is your total return it com peting yields are 15%? Your total return is 93. (Round yourresponse to two decimal pieces.)

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