Which of the following statements is most accurate?
A. Yield to maturity is equal to the coupon rate if the bond is held to maturity.
B. Yield to maturity is the same as the coupon rate if the bond is purchased for face value and held to maturity.
C. Yield to maturity will exceed the coupon rate if the bond is purchased for face value.
D. Yield to maturity is the same as the coupon rate.
Answer: B
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Which of the following is a measure of the explanatory power of the regression model?
A) t-test B) R2 C) F-test D) Durbin-Watson test
The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. To correct for this problem, the town could
a. allow individual shepherds to choose their own flock sizes. b. internalize the externality by subsidizing the production of sheep's wool. c. auction off a limited number of sheep-grazing permits. d. wait until the market corrects the problem.
Which of the following statements is most consistent with the benefits-received principle of taxation?
A. A childless couple should not be required to pay taxes for the support of public schools. B. Prosperous corporations should pay substantial taxes even if they use few government goods and services. C. The best tax is the income tax. D. People with high incomes should pay more taxes than people with low incomes.
When Apple put together a set of mobile apps with its iPhone, it was practicing
A) a loss leader. B) tie-in sales. C) bundling. D) compacting.