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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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