A Consol Bond Promises to Pay $1000 Each Year,forever,starting Next

question 23

Multiple Choice

A consol bond promises to pay $1000 each year,forever,starting next year.If the nominal interest rate is 5%,the present discounted value of this consol is

• A)$900.00.
• B)$995.00.
• C)$2,500.00.
• D)$20,000.00.
• E) $25,000.00.

---

Definitions:

Heated Argument

A heated argument refers to an intense and often emotional disagreement between individuals.

Night Terrors

Intense episodes of fear that occur during deep sleep, often causing a person to awake in a panicked state.

Hypnotizability

Refers to the degree to which an individual is responsive to hypnotic suggestions.

Personal Thoughts

Individual reflections, opinions, or contemplations held by a person.