The present value of an infinite stream of dollar payments of $$z($that starts next year$)$ is $$\frac{z}{i}$ when the nominal interest rate, $i,$ is constant. This formula gives the price of a consol$-$a bond paying a fixed nominal payment each year, forever. It is also a good approximation for the present discounted value of a stream of constant payments over long but not infinite periods, as long as i is constant.

Suppose that $i=8\%.$ Let $$z=$$$100.$

The present value of the consol is $$1250.($Enter your response as a whole number.$)$

Find the expected present discounted value of each of the following bonds. $($Hint: Use the formula from the chapter but remember to adjust for the first payment.$)$

If $i=8\%,$ the expected present discounted value of a bond that pays $$100$ per year over the next $10$ years is $ $($Round your response to the nearest whole number.$)$ If $i=8\%,$ the expected present discounted value of a bond that pays $$100$ per year over the next $20$ years is $ $($Round your response to the nearest whole number.$)$ If $i=8\%,$ the expected present discounted value of a bond that pays $$100$ per year over the next $30$ years is $ $($Round your response to the nearest whole number.$)$ If $i=8\%,$ the expected present discounted value of a bond that pays $$100$ per year over the next $40$ years is $ $($Round your response to the nearest whole number.$)$