Assume that you purchased a $1,000 perpetual bond that pays a market interest rate of 5 percent. If you attempted to sell this bond today subsequent to an increased market rate of interest of 7.5 percent, then you
a. could only sell this bond at a capital loss.
b. could sell this bond at a capital gain.
c. would not be able to sell this bond.
d. could exchange your bond yielding 5 percent for a bond yielding 7.5 percent on an even exchange basis.
A
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In the above figure, a trough is at point ________ and a peak is at point ________
A) a; b B) b; c C) b; a D) d; c
The gross replacement rate is typically 95% of pretax earnings.
A. True B. False C. Uncertain
Economic growth causes the
A. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward. B. production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward. C. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward. D. production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward.
Explain the difference between correlation and causation
What will be an ideal response?