A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1000 at a price of $10,000. If the interest rate in the economy is now 12.5% a year and you want to sell the bond, the maximum price that you can get for it is:

A. $7,500

B. $8,000

C. $9,750

D. $12,500


B. $8,000

Economics

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When uncertainty over the timing of death is added to the LCH, this ________ the planning horizon and ________ the MPC for transitory income

A) shortens, raises B) shortens, lowers C) lengthens, raises D) lengthens, lowers

Economics

The World Bank sorts countries into the following three major groups:

a. high-income economies, middle-income economies, low-spending economies b. high-spending economies, middle-spending economies, low-spending economies c. super-high-income economies, middle-income economies, low-income economies d. high-income economies, middle-income economies, zero-income economies e. high-income economies, middle-income economies, low-income economies

Economics

If saving is greater than domestic investment, then

a. there is a trade deficit and Y > C + I + G. b. there is a trade deficit and Y < C + I + G. c. there is a trade surplus and Y > C + I + G. d. there is a trade surplus and Y < C + I + G.

Economics

The nation of Exland is considered a less-developed country and has the following characteristics. Which one is not typical of a less-developed country?

A. high illiteracy B. high unemployment C. rapid growth of technology D. rapid population growth

Economics