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British government 3% perpetuities pay 3 interest each year forever. Another bond, 10% perpetuities, pays 10 a year forever. a. What is the value of

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British government 3% perpetuities pay 3 interest each year forever. Another bond, 10% perpetuities, pays 10 a year forever. a. What is the value of 3% perpetuities if the long-term interest rate is 4.5% ? (Round your answer to 2 decimal places.) b. What is the value of 10% perpetuities? (Round your answer to 2 decimal places.)

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