The British Government Has a Consol Bond Outstanding That Pays

question 40

Multiple Choice

The British government has a consol bond outstanding that pays ₤100 in interest each year.Assuming that the current interest rate in Great Britain is 5% and that you will receive your first interest payment immediately upon purchasing the consol bond,then the value of the consol bond is closest to:

• A)₤2000.
• B)₤2100.
• C)₤1000.
• D)₤1100.

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Definitions:

Neural Activity

The electrical and chemical processes within neurons that allow the brain and nervous system to function.

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.

Nondeclarative Memory

A type of long-term memory that stores skills, habits, and learned responses that can be expressed without conscious thought.

Long-term Memory

The phase of the memory system that is capable of storing information for long periods, sometimes throughout life.