Question: 1. < Question 1 (of 4) value: 1.00 points Save & Exit Submit British government 4% perpetuities pay 4 interest each year forever. Another

1. < Question 1 (of 4) value: 1.00 points Save & Exit

1. < Question 1 (of 4) value: 1.00 points Save & Exit Submit British government 4% perpetuities pay 4 interest each year forever. Another bond, 1.5% perpetuities, pays 1.5 a year forever. a. What is the value of 4% perpetuities if the long-term interest rate is 3.5%? (Round your answer to 2 decimal places.) Perpetuity value b. What is the value of 1.5% perpetuities? (Round your answer to 2 decimal places.) Perpetuity value

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