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:
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Q1: If the nominal interest rate is 20%
Q2: With a nominal interest rate of 5%
Q3: The nominal interest rate is
A)the interest rate
Q4: If the nominal interest rate is less
Q5: If the nominal interest rate 8% and
Q7: Whenever the expected inflation rate is positive
A)the
Q8: If the expected inflation rate is negative,the
Q9: Which of the following best defines the
Q10: Data on real and nominal interest rates
Q11: The present discounted value of a future
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