If a one-year zero-coupon bond has a face value of $100, is purchased for $94, and is held to maturity the:
A. holding period return will exceed the yield to maturity.
B. yield to maturity will exceed the holding period return.
C. holding period return is 6.0%.
D. yield to maturity will be 6.38%.
Answer: D
You might also like to view...
Munn v Illinois (1877) was particularly important with regard to government regulation because it
(a) upheld the traditional right of businesses to act freely without interference by government. (b) established the right of government to regulate any business that was deemed "clothed" in the public interest. (c) established the right of government to regulate any and all businesses wherever such regulation was deemed desirable to promote competition. (d) established the right of government at any level to regulate any business activity if such regulation was deemed desirable for any reason.
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to
A) 16. B) 21. C) 25. D) 58.
If the demand for a product is elastic, then a rise in price will
a. cause total spending on the good to increase. b. cause total spending on the good to decrease. c. keep total spending the same, but reduce the quantity demanded. d. keep total spending the same, but increase the quantity demanded.
When the production or consumption of a good involves an externality: a. resources are necessarily overallocated to the good
b. resources are necessarily underallocated to the good. c. someone not involved in buying or selling the good is affected. d. the market will efficiently allocate resources to its production.