Suppose you sell a $1,000 bond that matures in 1 year for $950. Calculate the interest rate you will have to pay on this bond.
A) 0.95%
B) 5.0%
C) 5.3%
D) 95%
Ans: C) 5.3%
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Which of the following U.S. Treasury securities represents ownership of the national debt?
a. Bonds owned by private individuals. b. Bonds owned by the Social Security Administration. c. All of the answers are correct. d. Bonds owned by the banks and insurance companies.
The rate at which one currency can be traded for another is called the:
A. terms of trade. B. transfer rate. C. exchange rate. D. coupon rate.
An example of ________ is a power plant generating water pollution.
A. a public good B. a negative production externality C. a positive production externality D. the free-rider problem
When the exchange rate between the U.S. dollar and the euro changes from 1.00 euro per dollar to 1.30 euros per dollar, then the
A) euro has depreciated against the euro. B) U.S. dollar has depreciated against the euro. C) U.S. dollar has depreciated against the dollar. D) euro has appreciated against the dollar. E) U.S. dollar has appreciated against the euro.