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2. The British government used to sell consol or perpetual bonds which never mature and pay coupon interest into infinity. If a consol bond paid

2. The British government used to sell consol or perpetual bonds which never mature and pay coupon interest into infinity. If a consol bond paid a 2.50 pound sterling coupon while alternative but comparable risk investments offer a 2% interest rate, how much would you be willing to pay for such a bond?

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