How is the interest rate on a bond calculated?
What will be an ideal response?
The interest rate, or coupon rate, on a bond is calculated by dividing the coupon by the face value of the bond.
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Inflation must be high in Moscow because it is very expensive to live there
Indicate whether the statement is true or false
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate rises and GDP Price Index rises. b. The real risk-free interest rate falls and GDP Price Index falls. c. The real risk-free interest rate rises and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Describe the changes in the variables that will cause the demand for a product to decrease, shifting the demand curve to the left
What will be an ideal response?
By 1860, over one-half of all Southern farms utilized slave labor
Indicate whether the statement is true or false