The coupon rate for a coupon bond is equal to the:
A. purchase price of the bond divided by the coupon payment.
B. annual coupon payment divided by the selling price of the bond.
C. annual coupon payment divided by the face value of the bond.
D. annual coupon payment divided by the purchase price of the bond.
Answer: C
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Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50 percent, this will lead to a maximum increase of ________ in M1 throughout all banks
A) $0 B) $21,000 C) $42,000 D) $84,000
Suppose the dollar is subject to a floating exchange rate system and that R is the number of dollars per unit of foreign exchange. If R increases, then the dollar
A) depreciates. B) appreciates. C) is devalued. D) is revalued. E) Both A and C.
What will cause a decrease in US AD?
a. an increase in interest rates b. a boost in consumer confidence c. a decrease in business material costs d. an increase in M1 and M2
A $1,000 face value bond purchased for $965.00, with an annual coupon of $60, and 20 years to maturity has a:
A. a yield to maturity and current yield equal to 6.00%. B. a current yield equal to 6.00%. C. a coupon rate equal to 6.22%. D. a current yield equal to 6.22%.