B4-15 (book/static) Question Help Perpetuities. 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 6.5%. What should this consol bond sell for in the market? What if the interest rate should all to 4.57 Rise to 8.5%? Why does the price go up when interest rates fall? Why does the price go down when interest rates rise? If the current discount rate for Canadian government bonds is 6.5%, what should this bond sell for in the market? $ 769.23 (Round to the nearest cont.) w the interest rateful to 4,5%, what should this bond sell for in the market? $ 1111.11 (Round to the nearest cont.) If the interest rate rises to 8,5%, what should this bond sell for in the market? $ 588 24 (Round to the nearest cont.) Why does the price go up when interest rates folland down when interest rates rise? (Select the best response) OA When the interest rate becomes larger (malier), the discounting period for each payment becomes shorter (onger) and the total present value of the perpetuty decreases increases) OB. When the interest rate becomes targer (mater), the present value of each payment becomes maler (arger) and the total present value of the perpetully decreases increases OG. When the interest rate becomes targer (mar), the payment at the end of each period becomes smaller (sper) and the total present value of the perpetuty decreases (increases OD. When the interest rate becomes larger (smaler), the future value of each payment becomes smaller (targer) and real present value of the perpetuty car