Two bonds of equal risk are for sale on the secondary bond market. The two bonds have the same face value, and both mature in 10 years. Bond A pays $10 per year and bond B pay $15 per year. Which bond will sell for a higher price?
A) Bond A
B) Bond B
C) They will sell for the same price.
D) The relative prices will depend on the expected interest rate over the next 10 years.
B
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With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets
A) active B) determined C) indirect D) direct
A firm's markup over its marginal cost is greater:
A. the more elastic is the demand curve. B. the less elastic is the demand curve. C. the lower its fixed costs. D. the lower its average costs.
Suppose your instructor gave hats with your school's logo to half of your economics classmates. She then asked these students to value the hats, and the average response was $9 per hat
Under the endowment effect, we should expect that the average value assigned by the economics students who did NOT receive the hats to be: A) higher. B) lower. C) the same. D) We cannot answer this question without knowing more about the risk preferences of the students.
If the supply of loanable funds shifts right, then the equilibrium
a. interest rate falls, so domestic residents will want to purchase more foreign assets. b. interest rate falls, so domestic residents will want to purchase fewer foreign assets. c. interest rate rises, so domestic residents will want to purchase more foreign assets. d. interest rate rises, so domestic residents will want to purchase fewer foreign assets.