8. Perpetulties. The Canadian Government has once again decided to issue a consol (a bond with a never-ending interest payment and no maturity date). The bond will pay $50 in interest each year (at the end of the year), but it will never return the principal. The current discount rate for Canadian government bonds is 6% What should this consolbond sell for in the market? What if the interest rate should tal to 5% Rise to 7%? Why does the price go up when interest rates fal? Why does the price go down when Interest rates rise? w the current discount rate for Canadian government bonds is 6%, what should this bond sel for in the market? (Round to the nearest cont.) of the interest rate fails to what should this bond sell for in the market? (Round to the nearest cent) e interest rate rises to 7%, what should this bond well for in the market? (Round to the nearest cent) Why does the price go up when interest rates foil and down when interest rates rise? (Select the best response) O A. When the interest rate becomes targer (maler), the counting period for each payment becomes shorter longer and the total present value of the perpetuty decreases increases) B. When the interest rate becomes larger (male), the present value of each payment becomes smaller (wgor) and the total present value of the perpetuity decreases increases) O c. When the interest rate becomes targer (smaler), the payment at the end of each period becomes smaller (larger) and the total present value of the perpetuity decreases increases) OD. When the interest rate becomes larger (mater, the nature value of each payment becomes smaller (larger) and the total prosent value of the perpetuity decreases (increases)