You are considering purchasing a consol that promises annual payments of $4. a. If the current interest rate is 2.5 percent, what is the price of the consol? Instructions: Enter your response to the nearest penny (two decimal places). The price of the consol is s160 b. You are concerned that the interest rate may rise to 5 percent. Compute the percentage change in the price of the consol and the percentage change in the interest rate. Compare them. Instructions: Enter your response for dollar amounts rounded to the nearest penny (two decimal places ) and responses for percentages rounded to the nearest tenth (one decimal place) The new price of the consol would be $ [80 , The price of the consol falls by-500 % and the interest rises by 1-50 %. c. Your investment horizon is one year. You purchase the consol when the interest rate is 2.5 percent and sell it a year later, following a rise in the interest rate to 5 percent. What is your holding period return? Instructions: Enter your response rounded to the nearest tenth (one decimal place). Your holding period return is [475] 0 % K Prey 4 of8 Next>