Fred purchases a bond, newly issued by the Big Time Corporation, for $20,000. The bond pays $1,000 to its holder at the end of the first, second, and third years and pays $21,000 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.
A. $21,400; 5 percent; four years
B. $1,000; 5 percent; four years
C. $20,000; 5 percent; four years
D. $20,000; $1,000; 50 percent
Answer: C
You might also like to view...
When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
The Little Man's Ice Cream Company sells ice cream in 5 countries from its small production facility in rural Vermont. According to economic definitions, this firm should be eligible for the "multinational business of the year" award
Indicate whether the statement is true or false
The welfare loss associated with the outcome in a colluding oligopoly is:
A. smaller than that of a perfectly competitive outcome. B. the same as that of a perfectly competitive outcome. C. smaller than that of a competitive oligopoly. D. None of these statements is true.
Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?
a. No; the imports of trucks declined from 1980 to 2000. b. Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share. c. Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn. d. No clear conclusions can be drawn.