practice exam questions #18 to fund its wars against napolean, the british government sold consol bonds. They were referred to as "perpetuities" because they would pay $3 every year in perpetuity. a. if a citizen could purchase a consol for $25 what would its annual interest rate be? b.what if the price were $50? c. what if the price were $100

Microeconomics A Contemporary Intro
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Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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to fund its wars against napolean, the british government sold consol bonds. They were referred to as "perpetuities" because they would pay $3 every year in perpetuity.

a. if a citizen could purchase a consol for $25 what would its annual interest rate be?

b.what if the price were $50?

c. what if the price were $100

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