Perpetuitios The Canadian Government has once again decided to issue a consol (a bond with a never-ending interest payment and no maturity date) The bond will pay $70 in interest each year (at the end of the year), but it will never return the principal The current discount rate for Canadian government bonds 87% What should this consol bond sell for in the market? What if the interest rate should fall to 6% Rise to 8% Why does the pnco go up when interest rates fall? Why does the pnce go down when interest rates rise