1. The price (P) of a consol offering an annual coupon payment (C) is best expressed by:

A. F/C

B. C(1 + i)

C. C/(1 + i)

D. C/i

2.

If a consol is offering an annual coupon of $50 and the annual interest rate is 6%, the price of the consol is:

A. $47.17

B. $813.00

C. $833.33

D. $8333.33

3.

When the price of a bond is below the face value, the yield to maturity:

A. is below the coupon rate.

B. will be above the coupon rate.

C. will equal the current yield.

D. will equal the coupon rate.