The British government has a consol bond outstanding paying pound 100 per year forever. Assume the current interest rate is 4 % 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?

Explanation:

From the question, we are informed that the British government has a consol bond outstanding paying pound 100 per year forever and that the current interest rate is 4% per year.

A. What is the value of the bond immediately after a payment is made?

The value of the bond here will be the present value of the payment on perpetuity. This will be payment divided by rate.

= $100/4%

= $100/0.04

= $2500

B. What is the value of the bond immediately before a payment is made?

The bond value here will be the value of the payment added to the value of the bond immediately after a payment is made which is calculated in (a) above. This will be:

= $100 + $2500

= $2600

i would ask my boss to do more things around the car shop. and i would slowly work my way up to working on cars and becoming a full time mechanic.

e would be the answer