2. In the past, the UK issued perpetual bonds called "consols", which paya constant cash flow of 4 million each year forever. Suppose the consols were issued with a 4% coupon rate. Today, the government of the UK wants to fully repay part of these outstanding consols. To finance this repayment, the government would issue a bond with a constant yearly payment for 20 years (payable at the end of each year). Suppose the government's discount rate is 3% and that the next consol is paid in exactly one year. a. What is the present value of the outstanding stock of consols? b. How much debt can the UK government issue through the new 20- year bond if it keeps the yearly payment constant at 4 million? c. What fraction of the stock of outstanding consols will the UK government be able to retire if it keeps the yearly payment constant at 4 million? d. What must the 20 year bond's yearly payment be in order to fully repay the stock of outstanding consols