All bonds that will not be held to maturity have interest rate risk which occurs because of the change in the price of the bond as a result of
A) interest-rate changes.
B) changes in the coupon rate.
C) default of the borrower.
D) changes in the asset's maturity date.
A
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Managers' pursuit of which of the following objectives would NOT lead to a principal-agent problem in a corporation?
A) The corporation's growth B) Increased market share for the corporation C) The maximum possible profit for the corporation D) A great "golden parachute" or retirement package E) Increased current salary and fringe benefits
An inferior good or service is any good or service for which:
a. an increase in price causes an increase in the quantity demanded. b. a decrease in price causes an increase in demand. c. an increase in price causes a decrease in the quantity demanded. d. an increase in the amount consumed causes a decrease in marginal utility. e. an increase in income causes a decrease in demand.