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British government 4.6% perpetuities pay 4.6 interest at the end of each year forever. Another bond, 3.1% perpetuities, pays 3.10 a year forever. a. What
British government 4.6% perpetuities pay 4.6 interest at the end of each year forever. Another bond, 3.1% perpetuities, pays 3.10 a year forever. a. What is the value of 4.6% perpetuities if the long-term interest rate is 6.6%? (Round your answer to 2 decimal places.) Perpetuity value ________________ b. What is the value of 3.10% perpetuities? (Round your answer to 2 decimal places.) Perpetuity value ______________
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