How are TIPS adjusted for inflation?
A) The interest rate is adjusted for inflation during each period.
B) The principal is adjusted once the bond reaches maturity.
C) The principal is adjusted for inflation each period.
D) The interest rate is adjusted once the bond reaches maturity.
C
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It is possible to determine how much a nation will export over and above its domestic consumption at various international prices, other things being equal, by finding a set of equilibria. This schedule is:
a. the import demand curve for a nation. b. the export supply curve for a nation. c. the production possibilities frontier for a nation. d. the "notrade" equilibrium.
What is the yield to maturity on a simple loan that requires payment of $500 plus $30 in interest one year from now?
A) 6% B) 6.38% C) 5.3% D) Not enough information has been provided to determine the answer.