How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%?

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

If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid

$2,000?

The current yield is ____%. (Round your response to the nearestinteger.)

If you sell this bond in exactly oneyear, having paid $2,000, and received exactly one couponpayment, what is your total return if competing yields are 8%?

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