What Is the Yield to Maturity of a Perpetuity with a Coupon

question 43

Short Answer

What is the yield to maturity of a perpetuity with a coupon of $40 and a price of $800?

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Definitions:

Double

A data type used in programming to represent floating point numbers with double the precision of the standard float type.

Float

A float refers to a floating-point number, which is a way of representing real numbers in computing that can handle fractions.

Precision

The degree of exactness with which a value is expressed or measured in computing and mathematics.

Numerical Accuracy

The degree to which the result of a computation conforms to the correct value, affected by various factors including floating-point representation and algorithmic design.