Please provide answer for the following problem. Thank you!

A firm sells a consol that promises to pay C each year forever. You are certain the firm will pay next year, but after that, there is a probability p each year that the firm will fail and not make any of the subsequent payments. The interest rate is r. In any given year, there is, of course, a probability (1-p) that the firm will not fail and make the payment, but the following year there will again be a probability p the firm will fail. What is the expected value today of the consol payment in 3 years? In j years? (Remember that you are certain the firm will make its payment in one year, the chance of failure only starts after that.) What is the value of the consol? A \"risk premium" is an additional amount added to the risk-free interest rate to discount a risky asset. So if risk-free interest rate is r, and the risk premium is x, the value of a risky stream of income Z is i Z",- 2 ((11+ r + 36)) i=1 In this simple example, what is the relationship between the risk premium and the probability of failure