When an investor buys a corporate bond, the face value of the bond is
A) a measure of ownership in the corporation.
B) a loan to the corporation.
C) the coupon rate of the bond.
D) a dividend payment on the bond.
Answer: B
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For the Fed to fully eliminate the costs of inflation, how low does the inflation rate need to be?
a. 0 percent b. 3 percent c. 5 percent d. 6 percent
The impact of increasing, as opposed to constant, costs is to:
A. intensify and prolong the comparative advantages that any nation may have initially. B. expand the limits of the terms of trade. C. cause the bases for further specialization to disappear as nations specialize according to comparative advantage. D. cause nations to realize economies of scale in those products in which they specialize.
Refer to the diagram. At P 4 , this firm will:
A. shut down in the short run.
B. produce 30 units and incur a loss.
C. produce 30 units and earn only a normal profit.
D. produce 10 units and earn only a normal profit.
Refer to the scenario above. In this game, the dominant strategy equilibrium occurs if ________
A) Firm A chooses Strategy Y, and Firm B chooses Strategy X B) Firm B chooses Strategy Y, and Firm B chooses Strategy X C) Both Firm A and Firm B choose Strategy X D) Both Firm A and Firm B choose Strategy Y