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Assume that the government has a bond outstanding paying $100 per year forever. Assume the current interest rate is 4% per year. a) What is

Assume that the government has a bond outstanding paying $100 per year forever. Assume the current interest rate is 4% per year. a) What is the value of the bond immediately after a payment is made? (2 Marks) b) What is the value of the bond immediately before a payment is made? (1 Mark)

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