A Consol Bond Promises to Pay $1500 Each Year, Forever

question 40

Multiple Choice

A consol bond promises to pay $1500 each year, forever, starting next year. If the nominal interest rate is 6%, the present discounted value of this consol is:

• A) $20000.00.
• B) $15000.00.
• C) $24000.00.
• D) $25000.00.
• E) $18000.00.

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