Perpetuities

British government $1\%$ perpetuities pay $1$ interest each year forever. Another bond, $2\mathrm{.}5\%$ perpetuities, pays $2\mathrm{.}5$ a year forever.

a$.$ What is the value of $1\%$ perpetuities if the long$-$term interest rate is $2\mathrm{.}5\%?($Round your answer to $2$ decimal places.$)$

Perpetuity value

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b$.$ What is the value of $2\mathrm{.}5\%$ perpetuities? $($Round your answer to $2$ decimal places.$)$

Perpetuity value

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