How much would you pay for a perpetual bond that pays an annual coupon of $100 per year and yields on competing instruments are 20%? You would pay $ (Round your response to the nearest penny.) If competing yields are expected to change to 15%, what is your expected capital gain (or loss)? The expected capital gain (or loss) is $ (Round your response to the nearest penny.)

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Q: Find the marginal efficiency of capital if the prospective yield is 291 and the supply price is 52.

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