Answer the next question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10%. If the price of this bond increases to $1,250, the interest rate will
A. rise to 11%.
B. fall to 9%.
C. rise to 12%.
D. fall to 8%.
Answer: D
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According to the interest rate effect, as the price level decreases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____
a. increases, decrease, increase, decreases b. increases, increase, increase, decreases c. decreases, decrease, increase, increases d. increases, increase, decrease, decreases
In the United States, which institution is primarily responsible for inspecting credit unions?
a. Federal Reserve b. Office of the Comptroller of the Currency c. National Credit Union Administration d. Federal Deposit Insurance Corporation
The market expansion effect of globalization has which of the following effects?
A. The labor force participation rate declines. B. The demand for labor for many kinds of work increases, pushing the equilibrium wage up. C. The overall number of workers employed falls. D. The supply of labor for many kinds of work increases, pushing the equilibrium wage down.
Which of the following correctly lists the categories of factors of production?
A) machines, buildings, land, and money B) hardware, software, land, and money C) capital, money, and labor D) owners, workers, and consumers E) land, labor, capital, and entrepreneurship