What is the price of a coupon bond that has annual coupon payments of $75, a par value of $1000, a yield to maturity of 5%, and a maturity of two years?
A) $1043.08
B) $1046.49
C) $1000.00
D) $1150.00
B
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A single-price monopoly
A) must practice price discrimination. B) can lower its price for only a few select consumers if it wants to increase its sales. C) will set its price equal to a consumer's willingness to pay. D) must lower the price for all customers if it wants to increase its sales. E) is able to raise its price as high as it wants and consumers must still buy from it because it is a monopoly.
Common resources differ from public goods in that
A) common resources are resources that cannot be renewed but the production of public goods can be increased any time. B) common resources are collectively owned by a group of people while public goods are government owned. C) unlike public goods, common resources are rival in consumption. D) common resources are non-excludable while public goods are excludable to those who do not pay for the good.
When economists say the supply of a product has decreased, they mean that
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
State and local governments
A. accurately account for their pension liabilities. B. understate the present value of their pension liabilities by using a discount rate that is too high. C. overstate the present value of their pension liabilities by using a discount rate that is too low. D. understate the present value of their pension liabilities by using a discount rate that is too low.