Compute the present value of a perpetual bond that pays a monthly cash flow of $1,000 at an annual interest rate of 12 percent.
A. $101,000
B. $100,000
C. $9,333.33
D. $8,333.33
Answer: B
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A) an unrelated B) a lower C) a higher D) an identical E) a nonexistent
According to Nakamura and Steinsson's research, prices are ________ sticky than Bils and Klenow found because the latter failed to account for ________
A) more; sales B) more; taxes C) less; taxes D) less; sales
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a. True b. False Indicate whether the statement is true or false
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