Suppose there is a decrease in the price at which a bondholder sells her bond. In this case, the holding period return will:
A. decrease, since this lowers the capital gain.
B. be negative.
C. equal the coupon rate.
D. increase, since yields and prices are inversely related.
Answer: A
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At a fixed level of worker productivity, ________
A) lower wages reduce quantity of labor demanded B) higher wages reduce cost of production C) higher wages reduce profits D) lower wages increase quantity of labor supplied
At the current level of output, a firm's marginal cost equals 16 and marginal revenue equals 10. The firm
A) is producing the profit-maximizing amount. B) should produce more. C) should produce less. D) Not enough information.
Suppose the market for shoes consists of three consumers. The accompanying table shows the quantity demanded at various prices for each consumer:PricePer PairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105At $100 per pair, market demand:
A. is less than the quantity supplied. B. intersects the x-axis. C. intersects the y-axis. D. is the same as Leigh's demand.
Refer to Figure 7-12 An increase in price from $20 to $30 would
Refer to . An increase in price from $20 to $30 would
a.
increase total revenue by $2,000.
b.
decrease total revenue by $2,000.
c.
increase total revenue by $1,000.
d.
decrease total revenue by $1,000.