What is the value of 37 perpetuities if the long-term


British government 3.7% perpetuities pay 3.7 interest at the end of each year forever. Another bond, 2.2% perpetuities, pays 2.20 a year forever.

a. What is the value of 3.7% perpetuities if the long-term interest rate is 5.7%? (Round your answer to 2 decimal places.)

b. What is the value of 2.20% perpetuities? (Round your answer to 2 decimal places.)

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Financial Management: What is the value of 37 perpetuities if the long-term
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