The price of a coupon bond will increase as the:
A. term to maturity is shorter.
B. face value decreases.
C. yield increases.
D. coupon payments increase.
Answer: A
You might also like to view...
The Navigation Acts
a. placed tariffs on the import of British goods by the colonies. b. provided for the free trade of colonial goods, including tobacco, indigo and sugar. c. required all colonial trade to be carried on English vessels. d. were abolished in 1700.
Why do people demand money? Explain the classical and Keynesian views
Economist A believes that the case for government is a strong one, but she doesn't always say, when it comes to negative externalities, that government can turn an inefficient market outcome into an efficient outcome. Which statement is economist A most likely to make?
A) If the tax placed on the activity that generates the negative externality is too large, we are not likely too move from inefficiency to efficiency. B) If the subsidy placed on the activity that generates the negative externality is too small, we are not likely to move from inefficiency to efficiency. C) If there is a free rider problem, then government cannot solve the problem of negative externalities. D) a and b E) none of the above
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.50, price is $4.00, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating:
A. at the break-even level of output in the short run. B. at an efficient level of output in the short run. C. with a loss in the short run. D. with a profit in the short run.