The principal amount of a bond is the amount:
A. paid to the bondholders on a regular basis.
B. originally lent.
C. of interest agreed upon when the bond was originally issued.
D. of interest the bondholder is entitled to when the bond matures.
Answer: B
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Most bank loans are __________ maturity by the bank because of the __________ in monitoring how the borrower maintains his obligations
A) held to; ease B) held to; difficulty C) sold before; ease D) sold before; difficulty
A lack of understanding regarding the current state of the economy creates:
A. an information lag. B. a formulation lag. C. an implementation lag. D. a direction lag.
Economists refer to the "typical" rate of unemployment as the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index and current international transactions remain the same. c. The GDP Price Index rises, and current international transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index rises, and current international transactions become more positive (or less negative).