One characteristic that distinguishes holding period return from the coupon rate, the current yield, and the yield to maturity is:
A. only the holding period return includes the capital gain/loss.
B. holding period return will usually be less than the other returns.
C. all of the other returns can be calculated at the time the bond is purchased, but holding period return cannot.
D. holding period return will always be the highest return.
Answer: C
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A tariff is imposed on strawberries. The tariff will ___________ the price of strawberries in the domestic market, _____________ the quantity of strawberries imported in the domestic market, and ____________ consumers' surplus
A) raise; lower; lower B) lower; raise; lower C) raise; lower; raise D) lower; lower; raise
During periods of hyperinflation, which of the following is the most likely response of consumers?
A. Save as much as possible. B. Spend money as fast as possible. C. Invest as much as possible. D. Lend money.
If consumers won't pay more than $1.50 for a pack of gum and at $1.50 they will buy an almost infinite amount, price elasticity of demand at $1.50 is:
A. elastic. B. inelastic. C. perfectly inelastic. D. perfectly elastic.
Consumer surplus
What will be an ideal response?