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The British government has a consol bond outstanding paying 400 per year forever. Assume the current interest rate is 12% per year. a. What is

The British government has a consol bond outstanding paying 400 per year forever. Assume the current interest rate is 12% per year.

a. What is the value of the bond immediately after a payment ismade?

b. What is the value of the bond immediately before a payment ismade?

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The British government has a consol bond outstanding paying $400 per year forever. Assume the current interest rate is 12% 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 f. . (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 f. . (Round to the nearest pound.)

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