If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?
A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years.
B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years.
C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years.
D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
D
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Which of the following is a similarity between an English auction and a Dutch auction?
A) The second-highest bidder wins the good in both auctions. B) The bidder who values the good the most wins it in both auctions. C) The bidders submit their bids privately at the same time in case of both auctions. D) In both auctions, the bidders submit their bids privately at different times during the bidding process.
If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital in dollars?
A) .5 B) 1 C) 2 D) 10
Each of the following is a basic economic role of the government except
A. tax collection. B. spending money. C. regulation of the economy. D. owning most of the means of production.
If marginal cost is rising, then average cost must be rising.
Indicate whether the statement is true or false.