A person buys a bond with a face value of $10,000 for $9,325. Each year until the maturity date the bond buyer receives $750 from the issuer of the bond. The yield on the bond is
A) 8.04 percent.
B) 7.5 percent.
C) 10.0 percent.
D) 6.75 percent.
E) There is not enough information to answer the question.
A
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The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?
A) 300 loaves of bread and 200 books B) 100 loaves of bread and 800 books C) 0 loaves of bread and 800 books D) 200 loaves of bread and 800 books E) 0 loaves of bread and 0 books
The town of Harmonia gives away all 500 tickets to its annual Founder's Day Free Concert-in-the-Park to local residents
Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as $75 each. Is a transaction where someone pays a resident $75 for a "free ticket" economically efficient? A) Yes, it was a voluntary exchange that benefited both parties. B) No, the buyer paid too much for the ticket. C) No, people should never be allowed to sell items they received for free. D) Yes, but it is efficient only from the perspective of the seller and not from the perspective of the buyer.
Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points
A) 0.1 to 0.2 B) 0.2 to 2.0 C) 0.4 D) 0.5 to 1.0 E) 1.0 to 3.0
The type of industry organization that is characterized by recognized interdependence and non price competition among firms is called
a. advertising strategy. b. market structure. c. price discrimination. d. oligopoly.