Consol Bonds

Perpetual Life Corp. has issued consol bonds with coupon payments of $$74.($Consols

pay interest forever and never mature. They are perpetuities.$)$

a$.$ If the required rate of return on these bonds at the time they were issued was $8\mathrm{.}8\%,$ at

what price were they sold to the public?

Price sold to the public

b$.$ If the required return today is $14\mathrm{.}8\%,$ at what price do the consols sell?