government has a consol bond outstanding paying $400$ per year forever. Assume the current interest rate is $4\%$ per year.

a$.$ What is the value of the bond immediately after a payment is made?

b$.$ What is the value of the bond immediately before a payment is made?

a$.$ What is the value of the bond immediately after a payment is made?

The value of the bond immediately after a payment is made is $($Round to the nearest pound.$)$

b$.$ What is the value of the bond immediately before a payment is made?

The value of the bond immediately before a payment is made is $($Round to the nearest pound.$)$