The bond rating of a security reflects the:
A. size of the coupon rate relative to other interest rates.
B. likelihood the lender/borrower will be repaid by the borrower/issuer.
C. size of the coupon payment relative to the face value.
D. return a holder is likely to receive.
Answer: B
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Real income measures the
A) slope of the budget line. B) purchasing power of a given income. C) slope of the preference map. D) area under the indifference curve.
In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output. b. the industry in consortium with the government determines price and output. c. one firm is the price leader and all other firms follow. d. the firms abandon a profit-maximizing goal. e. firms do not operate where MR = MC.
The welfare programs undertaken by the U.S. government have been universally successful in reducing poverty and fostering economic growth
a. True b. False Indicate whether the statement is true or false
Which of the following goods would be most likely to feature an income elasticity of zero?
a. tickets to a championship football game b. insulin c. orange juice d. cigarettes