Multiple Choice
A consol has an annual coupon payment of $50. If the price of the consol rose from $400 to $500, the yield on the consol would
A) fall from 10 percent to 8 percent.
B) fall from 12.5 percent to 10 percent.
C) rise from 10 percent to 12.5 percent.
D) rise from 8 percent to 10 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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