Suppose the current one-year interest rate is 4%, and financial markets expect the one-year interest rate next year to be 8%. Given this information, the yield to maturity on a two-year bond will be approximately
A) 4%.
B) 6%.
C) 8%.
D) 12%.
E) none of the above
B
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The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the consumer surplus equals ________
A) $20,000 B) $10,000 C) $45,000 D) $40,000
The invention of the Bessemer converter in 1856:
a. increased the cost of continuous and coordinated operations of a steel industry. b. motivated downstream integration of the steel industry into coal mining. c. increased the efficient scale of steel production. d. increased volumetric interdependence between different stages of steel production.
Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.
The sum of internal and external costs is
A) externalities. B) social costs. C) internalities. D) private costs.