Which of the following statements is true?
A) The lower the price of a bond, relative to its face value, the lower the interest rate.
B) The lower the price of a bond, relative to its maturity, the lower the interest rate.
C) The higher the price of a bond, relative to its face value, the higher the interest rate.
D) The lower the price of a bond, relative to its face value, the higher the interest rate.
Ans: D) The lower the price of a bond, relative to its face value, the higher the interest rate.
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The gap in GDP between the United States and Europe can be explained by the fact that
A) income taxes are higher in the United States. B) prices are higher in the United States. C) equilibrium employment is higher in Europe. D) the Okun Gap is larger in the United States. E) U.S. labor is more productive than European labor.
A nonrival good is a good that a. is produced by a monopoly
b. is produced by a cartel. c. can provide benefits to additional users at a zero marginal cost. d. is sold in a single market.