A bond that is currently selling at $1,000 offers to pay $50 annually. What is the percentage rate of return on the bond?
A. 10%
B. 50%
C. 5%
D. 20%
Answer: C
You might also like to view...
Utils are used by economists to measure the satisfaction a person obtains from consuming a good
Indicate whether the statement is true or false
If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient? Explain
A price index is:
a) a comparison of the current price of a market basket to a fixed point of reference. b) a comparison of real GDP in one period relative to another. c) the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. d) a ratio of real GDP to nominal GDP.
If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:
A. remain constant. B. increase. C. drop to zero. D. decrease.