The price of a coupon bond is determined by taking the present value of:
A. all of the bond's payments.
B. the coupon payments and adding this to the face value.
C. the bond's final payment and subtracting the coupon payments.
D. the bond's final payment.
Answer: A
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What will be an ideal response?
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a. a longer time; the FOMC meets much more often than Congress b. a longer time; Congress must debate and agree on the action c. a shorter time; Congress meets much more often than the FOMC d. a shorter time; the FOMC cannot act without congressional approval
The United States typically has a merchandise ______ and a service ______.
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Leakages in the circular flow model are
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