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QUESTION25: The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest rate is 8% per year. a. What

QUESTION25:

The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest rate is 8% 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.)

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