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 $1000 . (Round your response to the nearest penny.)

Part 2 If competing yields are expected to change to 12 %, what is the current yield on this same bond assuming that you paid $2,000 ?

The current yield is enter your response here %. (Round your response to the nearest integer.)

Part 3 If you sell this bond in exactly one year, having paid $2,000 , and received exactly one coupon payment, what is your total return if competing yields are 12 %?

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