Suppose a bond has a coupon of $40, face value of $1000, and current price of $950. What is the coupon rate? What is its current yield? Report a percentage with two decimal places
What will be an ideal response?
The coupon rate is $40/$1000 = 4.00%. The current yield is $40/$950 = 4.21%.
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The median voter model explanation for the landside victory of Ronald Reagan over Walter Mondale is that _____
a. Reagan was far closer to the median voter than Mondale b. Reagan was far more charismatic than Mondale c. Reagan was able to use the power of incumbency to overwhelm Mondale d. Reagan was able to be more extreme than Mondale and still win
A production possibilities frontier can shift inward if there is
a. an increase in the unemployment rate b. mandatory retirement at age 55 c. an improvement in technology d. a larger work force e. a larger capital stock
Which of the following productive resources is considered ‘fundamentally different’ from other resources with respect to supply and diminishing returns?
A. labor. B. land. C. physical capital. D. technology.
If labor-intensive textile products could be produced more cheaply in low-wage countries than in the United States, the United States would gain if it
a. levied a tariff on the goods produced by the cheap foreign labor. b. subsidized the domestic textile industry so it could compete in international markets. c. used its resources to produce other items while importing textiles from foreigners. d. levied a tax on the domestic textile products to penalize the industry for inefficiency.