On June 2, 2017, Diamond Chemical Corporation’s 4.1 percent coupon bonds, with face values of $100, was sold for $95. This means that the yield on these bonds was
A. less than 4.1 percent.
B. equal to 4.1 percent.
C. equal to 95 percent of 4.1 percent.
D. greater than 4.1 percent.
Answer: D
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Loss aversion is the tendency to:
A. weigh gains more heavily than losses. B. dislike gains, but enjoy losses. C. enjoy gains, but dislike losses. D. weigh losses more heavily than gains.
A price floor is
A. the difference between the initial equilibrium price and the equilibrium price after a decrease in supply. B. the minimum price that consumers are willing to pay for a good. C. a maximum price set by government that sellers may charge for a good. D. a minimum price set by government that sellers may charge for a good.
occurs at the point where the demand curve and supply intersect
What will be an ideal response?
A steel company sells some steel to a bicycle company for $150 . The bicycle company uses the steel to produce a bicycle, which it sells for $250 . Taken together, these two transactions contribute
a. $150 to GDP. b. $250 to GDP. c. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. d. $400 to GDP.