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    Exam 3: What Do Interest Rates Mean and What Is Their Role in Valuation?
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    The Yield to Maturity on a Consol Bond That Pays
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The Yield to Maturity on a Consol Bond That Pays

Question 35

Question 35

Multiple Choice

The yield to maturity on a consol bond that pays $100 yearly and sells for $500 is


A) 5 percent.
B) 10 percent.
C) 12.5 percent.
D) 20 percent.
E) 25 percent.

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