A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause
A) the price of the bond to fall.
B) the price of the bond to rise.
C) the nominal value of the bond's coupon to rise.
D) the nominal value of the bond's coupon to fall.
A
You might also like to view...
What is the primary prediction of the median voter model? List the two key assumptions of the median voter model regarding the preferences of voters
What will be an ideal response?
The GDP deflator does not differ from the CPI in its measurement of inflation in that it:
A. measures the price changes of all goods, not just those in a typical consumer's basket. B. uses the total quantities that are produced, not the ratio of what a typical consumer might consume. C. does not include imports, which may have a real effect on the typical consumer's cost of living. D. is the most widely used measure of price level changes for goods and services for consumers.
Coins and dollar bills are money in the form of
a. barter b. currency c. value d. capital e. specie
The paper money or currency in the U.S. essentially represents:
A. A debt of commercial banks and savings institutions B. A debt of the U.S. Treasury C. An asset of the Federal government D. A debt of the Federal Reserve System