Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond D is approximately
A. 11 percent.
B. 3.2 percent.
C. 2.9 percent.
D. 0.03 percent
Answer: C
You might also like to view...
The above figure shows a monopolistically competitive firm. The figure
A) is only a short-run illustration because the firm is making an economic profit. B) could be either a short-run or long-run illustration because monopolistically competitive firms can make an economic profit in the long-run. C) is only a long-run illustration because the firm is making zero economic profit. D) is neither a short- nor a long-run illustration.
The difference between the interest rate on loans to households and firms and the rate on completely safe assets is known as ________
A) the discount rate B) the FICO score C) the credit spread D) the prime rate
________ is the expansion of a firm into stages of production earlier or later than those in which it has specialized
a. Economies of scope b. Vertical integration c. Economies of scale d. Bounded rationality
According to classical economists,
A) spending equals saving. B) saving equals income. C) income equals wealth. D) none of the above