A consol is a bond that pays a fixed nominal payment each year forever. Let's assume that payments start this year. What would be the current price of the consol when the nominal interest rate is constant at 5% and the annual payment is $1,000? OA. O A. $20,000 $1,050 OB. Ос. 51,000 OD. O D. $21,050 OE. $21,000

A consol is a bond that pays a fixed nominal payment each year forever. Let's assume that payments start this year. What would be the current price of the consol when the nominal interest rate is constant at 5% and the annual payment is $1,000? OA. O A. $20,000 $1,050 OB. Ос. 51,000 OD. O D. $21,050 OE. $21,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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