Question: What is the main difference between a consol and an annuity ? Status: [ object Object ] 1 point A consol is not subject to
What is the main difference between a consol and an annuity
Status: object Object
point
A consol is not subject to market risk.
The consol has a fixed price of $ at inception whereas the annuity price is given by the market.
A consol pays a constant quantity coupon forever, whereas the annuity also pays a constant quantity but only until a fixed time T called the maturity date.
An annuity pays a constant quantity coupon forever, whereas the consol also pays a constant quantity but only until a fixed time T called the maturity
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