Multiple Choice
Assume a consol, that is, a bond without maturity date that pays $800 for each year you own it.What is the current price of this consol, if the market interest rate is i = 8%?
A) $10,000
B) $6,400
C) $4,000
D) $1,000
E) the price would depend on how long you plan to own this consol
Correct Answer:
Verified
Correct Answer:
Verified
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