A person buys a bond with a face value of $10,000 for $9,780. Each year until the maturity date the bond buyer receives $650 from the issuer of the bond. The yield on the bond is
A. 6.6 percent.
B. 6.5 percent.
C. 10.0 percent.
D. 6.75 percent.
E. There is not enough information to answer the question.
Answer: A
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Firms may be tempted to cheat on cartel agreements by: a. raising both price and output
b. lowering both price and output. c. raising price and reducing output. d. lowering price and increasing output.
The central problem of economics is the
A) Distribution of goods and services to those in need. B) Human wants exceeding the availability of resources. C) Inefficiency of government operations. D) Labor unemployment.
If the dollar depreciated relative to the yen, it would be expected that
A. the Japanese trade surplus with the U.S. would be increased (or the trade deficit would be reduced). B. Japanese imports from the United States would decrease. C. Japanese exports to the United States would decrease. D. All of the choices are true.
What is the effect on the price and quantity of wooden desks of a rise in the price of wood?
A) The equilibrium quantity of wooden desks increases and the equilibrium price falls. B) The equilibrium quantity of wooden desks increases and the equilibrium price rises. C) The equilibrium quantity of wooden desks decreases and the equilibrium price falls. D) The equilibrium quantity of wooden desks decreases and the equilibrium price rises.