If the face value of a bond is $5,000 and the coupon is $200, what is the interest rate?
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. In this case, the interest rate is $200 / $5,000 = 4%.
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The Bertrand model of price setting assumes that a firm chooses its price
A) independently of what price other firms charge. B) subject to what price rival firms are charging. C) so that joint profits are maximized. D) without considering the shape of the demand curve.
A type I error is
A) always the same as (1-type II) error. B) the error you make when rejecting the null hypothesis when it is true. C) the error you make when rejecting the alternative hypothesis when it is true. D) always 5%.
Which type of audit involves the task of reviewing documents?
a. financial statement audit b. operational audit c. compliance audit d. integrated audit e. all of these
How would each of the following affect the firm's marginal, average, and average variable cost curves?
a. There is an increase in wages? b. There is a decrease in material costs? c. The government imposes a fixed amount of tax? d. The rent that the firm pays on the building that it leases decreases?