Lefs denshe the price of a nonmalung bond $($called a cxonsol$)$ acs $P_b.$ The equadion that indicates tras price is $P_f=\frac{1}{f}$ Where I is the annual net ncome the bond generates and ris the nomnal market inlerest rale

a$.$ Supcome thaL, a bond promisers the holder $$500$ peir year forever. The nomnal market inderest rade is $5$ percend Gilculale the bond's current price: $5($Fownd pour answer to the novirwst whow dallar$)$

Let's denote the price of a nonmaturing bond $($caled a consal$)$ as $P_t.$ The equation that indicates this prica is $P_0^{**}=\frac{1}{r}.$ where Is the annuss net income the bond generates and $r$ is the nomiral market interest rate.

a$.$ Suppese that a bond promises the holder $$500$ per year forever. The nominal market inderest rate is $5$ percent. Galculane The bond's carrert price: $5($Round your ansmer to the nearest whalo doder.$)$