The value of a consol paying $70 annually and yielding 7% will be priced in the market at $1000.

Name: The value of a consol paying $70 annually and yielding 7% will be priced in the market at $1000.
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Quizplus · Accepted Answer

A consol is a type of bond that pays a fixed annual interest indefinitely. The price of a consol is calculated by dividing the annual payment by the yield. In this case, $70 / 0.07 = $1000.

The Value of a Consol Paying $70 Annually and Yielding