If you purchased a newly issued 30-year bond from American Airlines with a face value of $1,000 and a coupon payment of 3 percent, American Airlines would pay you
A) $33.33 per year for 30 years plus $1,000 at the end of the 30th year.
B) $30 per year for 30 years.
C) $30 per year for 30 years plus $1,000 at the end of the 30th year.
D) $33.33 per year plus 3 percent per year for 30 years.
Answer: C
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Stock options do not eliminate the principal-agent problem entirely for each of the following reasons except which one?
A) A company's profit depends on the actions of all employees. B) A company's stock prices fluctuate for reasons not directly related to a company's profit. C) A company's stock price rarely changes. D) A company's executive does not have unlimited control over all employees and their actions.
If a firm wished to maximize total revenues it should produce where
a. marginal cost is zero. b. marginal revenue is zero. c. marginal revenue is equal to marginal cost. d. marginal revenue is equal to price.
The government policy that does not increase economic growth is
A. incentives to firms in the form of investment tax credits that can take the economy out of a low saving-investment trap B. foreign trade policy that favors imposing a high tariff on imported high-tech goods C. better health and education policies that provide free childhood vaccination, water purification, and K-12 public education D. policy concerning property rights and rules of law that can free the country from corruption and political instability
According to the Application, in 1960 the Cuban government
A) did not allow people to sell or rent their homes. B) caused a large shortage of housing as a result of its policies. C) confiscated most housing in the country. D) all of the above.