1. A consol or a perpetuity is a bond:
a. That has no maturity date.
b. That has no repayment of principal.
c. That makes a fixed coupon payment forever.
d. On which (a), (b) and (c) are correct.
2. According to the Fisher Equation, the nominal interest rate is equal to:
a. The expected inflation rate.
b. The real interest rate.
c. The real interest rate plus the expected inflation rate.
d. The nominal interest rate minus the expected inflation rate.
