A corporate bond sold in 2000 with a face value of $10,000 . a $100 coupon, and a maturity date in 2010
a. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $9,000 in 2010.
b. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay him $10,000 in 2010.
c. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay him $10,000 in 2010.
d. requires the bondholder to pay $100 in 2000 only and will pay him $10,000 in 2010.
b
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Suppose a firm receives $975 for a discount bond with a face value of $1000 to be repaid in one year. What is the amount of interest on the bond? What is the interest rate on the bond? Report a percentage with two decimal places
What will be an ideal response?
The exit of existing firms from a competitive market will
a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices.
The Social Security tax is a tax on
a. capital. b. labor. c. land. d. savings.
For a typical natural monopoly, average total cost is
a. rising, often because marginal costs are very large. b. rising, often because fixed costs are very large. c. declining, often because marginal costs are very large. d. declining, often because fixed costs are very large.