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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Definitions:

Meeting

A gathering of people, in-person or virtual, for the purpose of discussion, decision-making, or information exchange.

Status Option

A feature in software that allows users to set or view the current state of a document, project, or task.

White Bar

A horizontal or vertical screen space, often used in user interface design, that separates content or groups items visually.

Status Option

A selectable setting or command within a software's status bar or settings menu that alters the display or behavior of application features.