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Question 14 5 pts The British government has a consol bond outstanding paying 800 pound per year forever. Assume the current interest rate is
Question 14 5 pts The British government has a consol bond outstanding paying 800 pound per year forever. Assume the current interest rate is 4 % per year. What is the value of the bond immediately after a payment is made? 20,800 30,800 O 20,000 O 19,200 5 pts Question 13 You are shopping for a car and read the following advertisement in the newspaper: "Own a new Spitfire! No money down. Five annual payments of just $ 18,000." You have shopped around and know that you can buy a Spitfire for cash for $ 70,000. What is the interest rate the dealer is advertising? Assume that you must make the annual payments at the end of each year. 7.01% 8.06% 9.06% 9.01%
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