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 $____ Round your response to two decimal places.)

If competing yields are expected to change to 8%, what is the current yield on this same bond assuming that you paid $1,600?

The current yield is ____ Round your response to two decimal places.)

If you sell this bond in exactly oneyear, having paid $1,600, 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.)