If a corporate bond with a face value of $5,000 pays yearly coupon payments of $100, what is the coupon rate?
A) 2% B) 5% C) 10% D) 20%
A
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Dan is the pricing director for a near monopoly. He has been warned to avoid predatory pricing. Which of the following actions does Dan need to avoid?
a. pricing products at exactly the same level as competitors b. charging higher prices when raw material costs increase c. charging different prices to different customers based on their occupation d. lowering prices to bankrupt his competitors, then raising prices dramatically
Utility is defined as the:
A. sense of pleasure or satisfaction derived from consuming goods and services. B. cost of acquiring goods and services. C. profits consumers earn from consuming goods and services. D. monetary value to consumers of goods and services.
If a consumer purchases only two goods (x and y) and the demand for x is elastic, then a rise in the price of x:
a. will cause total spending on good y to rise. b. will cause total spending on good y to fall. c. will cause total spending on good y to remain unchanged. d. will have an indeterminate effect on total spending on good y.
A restriction on the quantity of a good that can be imported into a country is a(n):
a. tariff. b. quota. c. embargo. d. restricted exchange rate.