British government 4% perpetulties pay 4 interest each year forever. Another bond, 8.5% perpetuities, pays 8.5 a year forever. a. What is the value of 4% perpetuities if the long-term interest rate is 8.0% ? (Round your answer to 2 decimal places.) b. What is the value of 8.5% perpetuities? (Round your answer to 2 decimal places.)