2. You are considering purchasing a consol that promises annual payments of $4. a. If the current interest rate is 5 percent, what is the price of the consol? b. You are concerned that the interest rate may rise to 6 percent. Compute the percentage change in the price of the consol and the percentage change in the interest rate. Compare them. Answer: a. $4/0.05 = $80 b. $4/0.06 = $66.67 P falls by 16.7%; i rises by 20% PLEASE SHOW HOW THEY GOT LETTER B PERCENTAGE CHANGE COMPUTATIONS