Suppose Ford Motor Company issues a 5% bond with a stipulation that if a national index of SUV sales drops by 10%, then Ford can decrease the coupon rate to 3%. This security is called a
A) credit option.
B) credit swap.
C) credit-linked note.
D) credit default swap.
C
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If a negative externality exists, __________ in order for the socially optimal output to be reached.
A. supply needs to increase B. supply needs to decrease C. demand needs to increase D. b and c E. none of the above
Which set of goals can, at times, conflict in the short run?
A) high employment and economic growth B) interest rate stability and financial market stability C) high employment and price level stability D) exchange rate stability and financial market stability
Suppose that when the price of hot dogs is $2 per package, there is a demand for 10,000 bags of hot dog buns. When the price of hot dogs is $3 per package, the demand for hot dog buns falls to 8,000 bags. What is the cross-price elasticity of demand for hot dogs and hot dog buns?
A. -0.4 B. -0.25 C. 4 D. 0.25
When an emissions tax is imposed on production of a good, the price will be __________ than it would be in the absence of the tax, and the equilibrium quantity will be __________ :
a. higher, higher b. lower, lower c. lower, higher d. higher, lower