Consols are British bonds that were issued during the 18^th century that paid a constant coupon and were not redeemable.What type of payment is this? A)an ordinary annuity B)an annuity due C)a perpetuity D)a growing perpetuity

Question

Quizplus · Accepted Answer

A perpetuity is a type of payment that continues indefinitely, with no end date. In the case of Consols, they paid a constant coupon (interest payment) but were never redeemable, meaning they continued to pay the same coupon indefinitely. Therefore, Consols are an example of a perpetuity.

Consols Are British Bonds That Were Issued During the 18th

Consols Are British Bonds That Were Issued During the 18^th