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

Economics

You might also like to view...

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

Economics

The gross replacement rate is typically 95% of pretax earnings.

A. True B. False C. Uncertain

Economics

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.

Economics

Explain the difference between correlation and causation

What will be an ideal response?

Economics