If you initially pay $1,000 for a bond with an annual interest rate of 5 percent, but then the market interest rate falls to 4 percent
A) the market price of the bond is still $1,000.
B) the bond's annual interest payment remains equal to $50.
C) the market price of the bond has increased.
D) the market price of the bond has decreased.
C
You might also like to view...
Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?
A) Direct consumer surveys. B) Expert opinion. C) Analysis of historical data. D) Test marketing and price experiments.
If the current price of a bond is greater than its face value
A) an investor will receive a capital gain by holding the bond until maturity. B) the yield to maturity must be less than the coupon rate. C) the coupon rate must be less than the current yield. D) the coupon rate must be equal to the current yield.
Post 9/11, air travel industry in the U.S. economy saw an increase in demand, which led to a sharp rise in employment opportunities
Indicate whether the statement is true or false
The phantom unemployed are
A. People who lack the skills to be employed. B. People who want a job but aren't looking because they don't expect to find one. C. People who report that they are actively seeking a job even when they have little or no intention of finding one. D. Workers with very high rates of absenteeism.