What is the price of a perpetuity that has a coupon of $\$ 70$ per year and a yield to maturity of $1.5 \% ?$ If the yield to maturity doubles, what will happen to the perpetuity's price?
Added by Gregory D.
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5%. Price of perpetuity = Coupon payment / Yield to maturity Price of perpetuity = $70 / 0.015 Price of perpetuity = $4666.67 Show more…
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