For a ten-year $1,000,000-face-value zero-coupon Treasury bond, how does its market price change when the interest rate goes from 6.84% to 6.92%?
A) A fall of $1192
B) A fall of $3848
C) A fall of $8000
D) A rise of $8000
B
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Which of the following statements about full employment is true?
A. Liberal economists insist that an unemployment rate of 4 percent constitutes full employment. B. Conservative economists feel that an unemployment rate of 6 percent is a realistic portrayal of full employment. C. Economists cannot agree on what constitutes full employment, thus 5% represents a reasonable compromise. D. All of these choices are true.
If you were a member of the NBER business-cycle dating committee, would you declare that the U.S
economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not, and what features of the data you would look for.
If there is a shortage in the market for automobiles, then
a. producers' inventories will rise b. the price should begin to rise c. the demand curve will shift to restore equilibrium in the market d. the supply curve will shift to restore equilibrium in the market e. the price is expected to fall
Which of the following is not a basic monetary policy tool used by the Fed?
A. The discount rate. B. Reserve requirements. C. Open-market operations. D. The income tax rate.