Multiple Choice
A consol bond promises to pay $1000 each year,forever,starting next year.If the nominal interest rate is 5%,the present discounted value of this consol is
A) $900.00.
B) $995.00.
C) $2,500.00.
D) $20,000.00.
E) $25,000.00.
Correct Answer:
Verified
Correct Answer:
Verified
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