British government 4.8% perpetuities pay 4.8 interest at the end of each year forever. Another...
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| British government 4.8% perpetuities pay 4.8 interest at the end of each year forever. Another bond, 3.3% perpetuities, pays 3.30 a year forever. |
| a. | What is the value of 4.8% perpetuities if the long-term interest rate is 6.8%? (Round your answer to 2 decimal places.) |
| Perpetuity value |
| b. | What is the value of 3.30% perpetuities? (Round your answer to 2 decimal places.) |
| Perpetuity value |
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