A consol has an annual coupon payment of $100 and a price of $800. The yield on this security is equal to __________ percent
A) 6
B) 10
C) 12.5
D) 14

Question

Quizplus · Accepted Answer

To find the yield on the consol, we divide the annual coupon payment ($100) by the price ($800) and multiply by 100% to get:
Yield = ($100/$800) x 100% = 12.5%
Therefore, the correct answer is choice C.

A Consol Has an Annual Coupon Payment of $100 and a Price