British government 3.9% perpetuities pay 3.9 interest at the end of each year forever. Another bond, 2.4% perpetuities, pays 2.40 a year forever.

a. What is the value of 3.9% perpetuities if the long-term interest rate is 5.9%? (Round your answer to 2 decimal places.)

Perpetuity value _______

b. What is the value of 2.40% perpetuities? (Round your answer to 2 decimal places.)

Perpetuity value _______