Consider a perpetual bond that pays $150/yr to its owner. What would be the price of the consol if the interest rate is 2 percent?
A. $30
B. $75
C. $3
D. $7,500
Answer: D
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By making exchange ________, money allows for specialization and higher ________
A) more difficult; costs B) more difficult; productivity C) easier; costs D) easier; productivity
A Purchasing Manager's Index below 50 indicates
A) a declining retail sector. B) a downturn in economic activity. C) an increase in bond prices in the near future. D) a declining manufacturing sector.
In the above figure, when the price of Good B increases, the result can be shown by
A) the movement from D1 to D2 in Graph A. B) the movement from D2 to D1 in Graph A. C) the movement along D0 from P1 to P2. D) the movement along D0 from P2 to P1.
An example of a negative externality is
A. a consumer paying too much for an item. B. an apple orchard increasing the number of trees next to a bee farm. C. pollution. D. the Clean Air Act.