Which of the following statements is true?
A) The lower the price of a bond, relative to its face value, the lower the interest rate.
B) The lower the price of a bond, relative to its maturity, the lower the interest rate.
C) The higher the price of a bond, relative to its face value, the higher the interest rate.
D) The lower the price of a bond, relative to its face value, the higher the interest rate.
Ans: D) The lower the price of a bond, relative to its face value, the higher the interest rate.
You might also like to view...
In 2012, which of the following countries had negative net export spending in GDP?
A) Germany B) Hong Kong C) the United States D) China
Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price. The black market for gasoline is ________ market in which the price ________ ceiling price
A) a legal; exceeds the B) an illegal; exceeds the C) a legal; is less than the D) an illegal; is less than the E) an illegal; equals
The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public. B) the power of advertisement. C) the problem of collective action. D) the basic impossibility of the democratic system to reach a fair solution. E) a cycle of political corruption.
A monopoly will usually produce
A) where its demand curve is inelastic. B) where its demand curve is elastic. C) where its demand curve is either elastic or inelastic. D) only when its demand curve is perfectly inelastic.