Answer:
Follows are the solution to this question:
Explanation:
Its console shall be coordinated effort mutual funds which do not grow at all, and in every year they create a corrected degree of interest, that's why Its bond paying a fixed rate of the coupon but not maturing.
[tex]\text{Consolation price} =\frac{\text{Set amount of coupon}}{\text{Return Rate}}[/tex]
[tex]= \frac{35}{2.5\%} \\\\ = \frac{35\times 100}{2.5} \\\\ = \frac{35\times 1000}{25} \\\\ = \frac{7\times 1000}{5} \\\\ = 7\times 200 \\\\= 1400[/tex]
It's the price that the government needs to offer shareholders.