If a bond has a face value of $1,000 and the bondholder receives coupon payments of $27.50 semi-annually, the bond's coupon rate is:
A. 27.5%
B. a value that cannot be determined from the information provided.
C. 2.75%
D. 5.50%
Answer: D
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In the national income accounts, net interest is the total interest payments received by households on loans made by them minus
A) interest received from households' ownership of government bonds. B) interest payments made by households on their own borrowing. C) interest payments made by households to foreign lenders. D) taxes paid by households on their interest income.
Some economists argue that federal government capital projects, which offer benefits over a number of years, should be financed through deficit financing
a. True b. False Indicate whether the statement is true or false
"I woke up earlier today to beat other fishermen to the fish and yet I caught the same number of fish at 5 a.m. as I did at noon." Which of the following best explains this occurrence? a. Many other fishermen also believe that they can catch a greater quantity of fish if they arrive earlier at the fishing area. So the area is crowded early in the day. b. The fish do not care when they eat, so
they are likely to bite on the bait at any time during the day. c. The catching of fish is mostly luck, so timing is not important. d. The early bird catches the worm.
The demand deposit multiplier is likely to be smaller than 1/RRR if
a. the public will not want to change its holdings of currency b. the public holds no currency c. banks want to hold excess reserves d. want to hold no excess reserves e. banks increase the number of loans they offer to make a larger profit