In August 2015, Intermarket Corporation’s 6 percent coupon bonds, with a face value of $1,000, was sold for $1,050. This means that the yield on these bonds was
A. less than 6 percent.
B. equal to 6 percent.
C. equal to 105 percent of 6 percent.
D. greater than 6 percent.
Answer: A
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When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market. B) the market is a monopoly. C) there underproduction in the market. D) the entire society experiences a loss.
Refer to Figure 7-2. Without the tariff in place, the United States produces
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.
Refer to Figure 19-3. At what level should the Thai government peg its currency to the dollar to make Thai exports cheaper to the United States?
A) less than $.03/baht B) equal to $.03/baht C) greater than $.03/baht D) $1/baht
The term Ceteris paribus means that:
a. everything is changing. b. all other things remain unchanged. c. no one knows which variables will change and which will remain constant. d. the basic principle of economics do not apply to the case being considered.