If a corporate bond with face value of $1,000 has an interest rate of eight percent paid once a year for a term of 30 years, what is the size of the annual coupon payment?
A) $1,000
B) $300
C) $80
D) $8
Answer: C
You might also like to view...
A profit-maximizing monopolist will continue expanding output as long as
a. marginal revenue exceeds marginal cost. b. marginal revenue is positive. c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit. d. economic profit is more than zero.
Jane decides to spend four hours working overtime rather than going to a family gathering. She earns $12.50 per hour for overtime work. Her opportunity cost of working is
a. the $50 she earns working. b. the $50 minus the enjoyment she would have received from going to the family gathering. c. the enjoyment she would have received had she gone to the family gathering d. nothing, since she wanted to work more than she wanted to attend the family gathering
What is the relationship between financial market development and economic growth?
What will be an ideal response?
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.