The price of a coupon bond is determined by:
A. taking the present value of the coupon payments and adding this to the face value.
B. taking the present value of all of the bond's payments.
C. estimating its future value.
D. taking the present value of the bond's final payment and subtracting the coupon payments.
Answer: B
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Which of the following is an example of positive externalities?
A. You allow weeds to grow on your yard. B. Your neighbor's barbecue smoke comes through your window. C. Your neighbor always listens to music at an unbearable volume. D. Your neighbor's garden is always well taken care of.
A primary objective of labor unions is to
A) secure equal pay for its members. B) have equal power with their employer. C) seek better pay and improved work conditions. D) all of the above. E) none of the above.
Whenever a society forgoes current consumption to invest in capital goods
A. it will have less to consume next year. B. it will be easier for that society to consume less in the future because people will become accustomed to less. C. it will be forced to produce fewer capital goods in the future. D. that society can consume more in the future.
The barter system requires the double coincidence of wants to be fulfilled
Indicate whether the statement is true or false