Suppose AT&T issues a five-year bond with a face value of $10,000 that pays an annual coupon payment of $300. What is the interest rate that AT&T is paying on the borrowed funds?
a. 15%
b. 3%
c. 10%
d. 33%
a. 15%
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It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find
a. it more attractive to raise taxes than to increase spending. b. it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion. c. budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion. d. budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.
Which of the following items would be considered scarce?
A. diamonds B. water C. plastic D. All of these are scarce.
________ in the desired reserve ratio will ________ the money multiplier
A) An increase; have no effect on B) An increase; decrease C) A decrease; decrease D) A decrease; will have no effect on
The last time a recession hit the country of Valtonia, the price of real estate fell significantly. When Craig learns that this country's stock market has crashed, he immediately decides to sell his houses. This is an example of the theory of _____
a. absolute advantage b. rational expectations c. adaptive expectations d. sticky wages