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British government 4% perpetuities pay 4 interest at the end of each year forever. Another bond, 2 % perpetuities, pay 2.50 a year forever a.)

British government 4% perpetuities pay 4 interest at the end of each year forever. Another bond, 2 % perpetuities, pay 2.50 a year forever

a.) What is the value of 4% perpetuities if the long-term interest rate is 6%? (Round your answer to two decimal places.)

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

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