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 a coupon payment of $650 from the issuer of the bond. The coupon rate on the bond is
A) 9.11 percent.
B) 6.5 percent.
C) 7.0 percent.
D) 6.75 percent.
B
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If the face value of a bond is $10,000,000, the coupon rate is 7%, and the inflation rate is 4%, then the annual coupon payment made to the holder of the bond is
A. $400,000. B. $700,000. C. $70,000. D. $300,000.
Assume the elasticity of of supply for a particular good has been estimated to equal 1.8. In this case, a 10 percent increase in product price would cause the quantity supplied to:
A) decrease by 1.8 percent. B) increase by 1.8 percent. C) decrease by 18 percent. D) increase by 18 percent.
Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:
a. growing suspicion among the nations of the world. b. hyperinflation in the major economies of the world. c. the recession which began in 2007. d. political turmoil in the Asian countries. e. the desire among the major players to dominate the international market.
Because its market share is insignificant, a perfectly competitive firm faces an inelastic demand curve
Indicate whether the statement is true or false