An individual buys a bond for $1,000 and sells it one year later for $1,050. What is the annual interest rate return that this individual has received on this bond?
A) 5.0 percent
B) 50.0 percent
C) 7.5 percent
D) 4.0 percent
E) 0.05 percent
A
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A risk-averse individual prefers
A) the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble. B) the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble. C) outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes. D) outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are. E) outcomes with highly divergent probabilities so that one of the outcomes is almost certain.
Diamonds have a high marginal utility because they
a. are considered to be so useful b. have such high total utility c. have high consumer surplus d. are so scarce e. are so expensive
If the United States imposes a tariff on the import of Japanese cars instead of a quota, the price
a. increase in Japanese cars goes into the revenue of U.S. automakers. b. increase in Japanese cars goes into the revenue of Japanese automakers. c. increase in Japanese cars goes into the revenue of the U.S. government. d. decrease in Japanese cars comes out of the revenue of U.S. automakers. e. decrease in Japanese cars comes out of the revenue of the U.S. government.
If the wage is kept above the equilibrium wage for any reason, the result is
a. cyclical unemployment. b. frictional unemployment. c. seasonal unemployment. d. structural unemployment.