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
You might also like to view...
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
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
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.
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