The interest rate that equates the price of a bond with the present value of its payments:
A. should always be greater than the coupon rate.
B. should be the one that makes the value equal to the par value of the bond.
C. will vary inversely with the value of the bond.
D. will vary directly with the value of the bond.
Answer: C
You might also like to view...
Which of the following distinctions does not help to explain the difference between relevant and irrelevant cost?
A) historical vs. replacement cost B) sunk vs. incremental cost C) variable vs. fixed cost D) out-of-pocket vs. opportunity cost E) All help to explain the difference.
In order for an economy to increase its production possibilities, the economy must
A) be very efficient. B) increase inputs. C) increase its wants. D) reduce output.
If the price of action figures was $10 each, his total utility would be ____ and your marginal utility would be ____.
Table-Demand and Utility Table for action figures
A. $30 and $10
B. $36 and $12
C. $36 and $10
D. $26 and $12
The percentage of world GDP represented by the G7 is ________ and the percentage of world GDP represented by the BRIC economies is ________
A) falling, rising B) falling, falling C) rising, falling D) rising, rising