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.)

If competing yields are expected to change to 12%, what is the current yield on this same bond assuming that you paid $1,000?

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

If you sell this bond in exactly oneyear, having paid $1,000 and received exactly one couponpayment, what is your total return if competing yields are 12%?

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