ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were "perpetuities" because they would pay £4 every year in perpetuity (forever). Instructions: Enter your answers rounded to 1 decimal place. a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be? 12.0 * percent What if the price were £100? 6.0 8 percent What if the price were £200? 3.0 8 percent

ADVANCED ANALYSIS To fund its wars against Napoleon, the British government sold consol bonds. These bonds were "perpetuities" because they would pay £4 every year in perpetuity (forever). Instructions: Enter your answers rounded to 1 decimal place. a. If a citizen could purchase a consol for £50, what would the consol's annual interest rate be? 12.0 * percent What if the price were £100? 6.0 8 percent What if the price were £200? 3.0 8 percent

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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