question archive A consol bond is a bond o§ering a constant periodic interest payment forever
A consol bond is a bond o§ering a constant periodic interest payment forever
Subject:BusinessPrice: Bought3
A consol bond is a bond o§ering a constant periodic interest payment forever. If a consol bond is priced to yield 5% and pays a dividend of $250 each year, what is its current value?
(a) $250.00
(b) $5000.00
(c) $12,500.00
(d) $1
