The British government has just issued a new consol bond that sells for £1000 and pays interest of 8%.The annual interest payment on this bond must be:
A)£80.
B)£8.
C)£1000.
D)£12,500.

Question

Quizplus · Accepted Answer

The annual interest payment on the bond is 8%, which means that for a bond with a face value of £1000, the annual interest payment would be £80 (8% of £1000).

The British Government Has Just Issued a New Consol Bond