Suppose US Treasury issues a perpetual bond paying a coupon of $400 (paid annually). If your required rate of return is 3% per annum, then how much you will be willing to pay for the bond

Annual coupon rate:

Required rate:

PV Perpetual Bond:

An annuity pays $2,000 every year for a total of 6 payments. The first payment will arrive at the end of 9th year. The interest rate is 12% per annum. Find the Present Value of the annuity (at T=0) Fill in the cells highlighted in Yellow.

PV:

Time of which PV was calculated:

PV at t=0