If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent, what is the most you can get for your old bond?
A) $917.43 B) $944.95 C) $970.87 D) $1,000
B
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A firm's fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000. What's the firm's contribution margin per unit?
a. $12 b. $10 c. $8 d. $4
When government inefficiencies exist
A) a country tends to grow at a slower rate. B) a country tends to grow at a faster rate. C) economic growth is not influenced. D) dead capital is usually not a problem.
The aggregate quantity of goods and services demanded changes as the price level falls because
a. real wealth falls, interest rates rise, and the dollar appreciates. b. real wealth falls, interest rates rise, and the dollar depreciates. c. real wealth rises, interest rates fall, and the dollar appreciates. d. real wealth rises, interest rates fall, and the dollar depreciates.
A typical monopolistically competitive firm
A. sells a homogeneous product in the market. B. earns zero economic profits in the long run. C. sets the price of its product equal to its marginal cost of production. D. faces a perfectly elastic demand curve.