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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
How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 5%? You would pay $ 4000. (Round your response to the nearest penny.) If competing yields are expected to change to 15%, what is your expected capital gain (or loss)? The expected capital gain (or loss) is $ . (Round your response to the nearest penny.)
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