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Suppose Anastasia has a consol bond (a perpetuity bond) that pays an annual coupon of $200 per year and yields on similar types of investments
Suppose Anastasia has a consol bond (a perpetuity bond) that pays an annual coupon of $200 per year and yields on similar types of investments are 10%. If Anastasia expects competing yields will increase to 12%, what is her expected capital gain (positive for a gain and negative for a loss)? O A. -$1,666.67 O B. -$333.33 O C. $1,066.67 O D. $2,884.47
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