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Business, 26.12.2019 02:31 kukisbae

British government 3.3% perpetuities pay £3.3 interest at the end of each year forever. another bond, 1.8% perpetuities, pays £1.80 a year forever.

a. what is the value of 3.3% perpetuities if the long-term interest rate is 5.3%? (round your answer to 2 decimal places.) perpetuity value £
b. what is the value of 1.80% perpetuities? (round your answer to 2 decimal places.) perpetuity value £

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