The current yield of a bond:
A. is another term for the yield to maturity.
B. is the difference between its future value and its present value.
C. equals zero for a zero-coupon bond since these bonds have no coupon payments.
D. is another term for the coupon rate.
Answer: C
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What will be an ideal response?
What is the opportunity cost of moving from point B to point C?
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Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold?
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When the substitution effect is greater than the income effect, Donna will supply more work if
A. wages are falling faster than prices. B. the wage rate and the price level increase proportionately. C. the percentage increase in the price level is greater than the percentage change in wages. D. none of the above.