If a bond offers $2,000 in interest payments at the end of each of next 5 years and a repayment of $10,000 also at the end of the 5 years and the current discount rate is 3 percent, what is the market price for the bond?
A) $12,874
B) $18,256
C) $7,593
D) $17,786
D) $17,786
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If the Fed fears inflation, then the Fed
A) directs banks to raise the nominal interest rate. B) will increase the income tax rate on interest income. C) directs banks to lower the nominal interest rate. D) will sell government securities in the open market. E) will buy government securities in the open market.
Which of the following is NOT an advantage of firm coordination of economic activity?
A) Firm coordination decreases transactions costs. B) When firms coordinate economic activity, there are no opportunity costs. C) Firms can take advantage of the economies of team production. D) Economies of scope can be realized by firms that produce a range of goods and services that share specialized resources.
The Bureau of Labor Statistics produces data on unemployment
a. weekly. b. monthly. c. quarterly. d. yearly.
Related to the Economics in Practice on page 238: An investor in the stock market experiences capital gains whenever
A. the company that issued the stock makes a profit. B. shares of stock are sold for mor e than their purchase price. C. shares of stock are sold. D. shares of stock are traded for stock in another company.