Another name for a consol is a ________ because it is a bond with no maturity date. The owner receives fixed coupon payments forever.
A)perpetuity
B)discount bond
C)municipality
D)high-yield bond

Question

Quizplus · Accepted Answer

A consol is also known as a perpetuity because it has no maturity date and pays fixed coupons indefinitely. This makes it similar to a perpetuity, which is a financial instrument that pays a fixed amount at set intervals indefinitely. The other options, such as discount bonds, municipalities, and high-yield bonds, do not accurately describe a consol.

Another Name for a Consol Is a ________ Because It