Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:
A. less than $10,000.
B. greater than $10,000.
C. $700.
D. $10,000.
Answer: A
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Public goods arise because of externalities.
Answer the following statement true (T) or false (F)
Marginal cost is calculated for a particular increase in output by
A) dividing the change in total cost by the change in output. B) dividing the total cost by the change in output. C) multiplying the total cost by the change in output. D) multiplying the change in total cost by the change in output.
In the early 1800s, ______________ developed a plan for the federal government's involvement in building transportation infrastructure such as canals and roads
a. Albert Gallatin b. Robert Fulton c. Thomas Jefferson d. Alexander Hamilton
According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market:
A. profits are not being maximized. B. firms will enter this market. C. economic profits are zero. D. firms will leave this market.