The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 8% per year. a. What is the value of the bond immediately after a payment is made? b. What is the value of the bond immediately before a payment is made? a. What is the value of the bond immediately after a payment is made? The value of the bond immediately after a payment is made is £. (Round to the nearest pound.) b. What is the value of the bond immediately before a payment is made? The value of the bond immediately before a payment is made is £. (Round to the nearest pound.)

Q&A Education