In calculating the current yield for a bond the:
A. coupon payment is ignored.
B. present value of the capital gain/loss is ignored.
C. present value of the coupon payments is the only important consideration.
D. present value of the final payment is the only important consideration.
Answer: B
You might also like to view...
Which of the following policies would be expected to increase private saving?
A. Increasing the tax rate on capital gains B. Replacing the income tax with a consumption tax C. Reducing the size of down payments needed to buy a house D. Providing more generous Social Security retirement benefits
When studying the effects of public policy changes, economists
a. always refrain from making assumptions. b. sometimes make different assumptions about the short run and the long run. c. consider only the direct effects of those policy changes and not the indirect effects. d. consider only the short-run effects of those policy changes and not the long-run effects.
A firm is currently producing at the point where MC = MR. The situation for the firm at this point is P = $5, Q = 100, ATC = $6, AVC = $4.50. What do you recommend this firm do?
A. Increase production above the current output rate, because MC = MR at this rate of output. B. Shut down, because ATC > P. C. Shut down, because AVC > P. D. Continue to produce the current output rate, because P > AVC.
Which of the following is not a regulatory trade restriction?
A. Inspections designed to impede trade processes B. Vegetables prohibited because of excess pesticide usage C. A limit on the number of imported cars D. Leather products banned because of tanning by urine