Yield on a bond refers to:
a. the coupon-rate of the bond.
b. the money earned by selling a bond.
c. the return from a bond after its maturity.
d. the difference between the face value of a bond and the bond price.
e. the annual return until the bond matures.
e
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For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?
A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases. B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases. C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.
In general, the demand for the product of a monopolistic competitor is
A) unitary elastic. B) relatively inelastic. C) relatively elastic. D) perfectly elastic.
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. positive; negative B. positive; positive C. uncertain; positive D. positive; uncertain
The general message of the full disclosure principle is that
A. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one. B. producers should offer lifetime warranties for low quality products. C. information is costly to fake. D. information is symmetric.