Suppose you purchase a two-year bond that has a $450 coupon and a face value of $5,000, and immediately after you purchase the bond, new bonds are issued that are otherwise identical, except they have coupons of $375
If you sell your bond, the price of your bond will be A) $4,868.07.
B) $5,000.00.
C) $5,069.76.
D) $5,134.67.
D
You might also like to view...
Saving is S, investment is I, net taxes is NT, government expenditure is G, exports is X, and imports is M. Using these symbols, what is the relationship among the saving, investment, net taxes, government expenditure, exports, and imports?
What will be an ideal response?
Which of the following would be an example of a lump-sum tax?
A. A compensated tax. B. A retail sales tax. C. A head tax. D. An admission fee.
Analysis that aims at determining only the economic consequences of a particular policy is called ________ analysis.
A. positive B. normative C. monetary D. fiscal
If the Fed decides to engage in an open market operation to increase the money supply, what will it do?
A. Sell Treasury bonds, bills, or notes on the bond market. B. Buy Treasury bonds, bills, or notes on the bond market. C. Increase the required reserve ratio. D. Increase the fed funds rate.