What is the approximate price of a $10,000 coupon bond that pays $1,000 in one year and $1,000 in two years at maturity? The effective yield on the bond is 6 percent
A) $10,000
B) $10,730
C) $10,900
D) $12,000
B
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. Equilibrium income is
A) 40. B) 50. C) 250. D) 400.
A union contract requiring elevator operators in a building with automatic elevators is an example of
A) a closed shop. B) featherbedding. C) a lockout. D) a right-to-work requirement.
When the price curve is a horizontal line, it always coincides with all of the following except
a. MR b. TR/Q c. AR d. change in total revenue divided by change in output e. TC
If the budget deficit for each year is held to a constant nominal value during constant inflationary times, then the inflation-corrected or real value of the total debt would
A. Rise at a constant rate. B. Initially rise but eventually would become negative. C. Rise at a decreasing rate. D. Begin to fall, but then continually rise.