When a person buys a bond of the XYZ Corporation, he or she can expect to
A) pay the corporation a certain amount of money each quarter of the year.
B) receive the face value of the bond each year and the face value of the bond when the bond matures.
C) receive the coupon rate times the face value of the bond each year and the face value of the bond when the bond matures.
D) receive the face value of the bond each year in perpetuity.
C
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When government action is justified based on the argument that everyone agrees to be coerced _____
a. we cannot be sure that everyone is in favor of the action b. the same justification is true of market exchange c. we can be sure that the current state of affair is Pareto efficient d. the private interest becomes the public interest
Which of the following would make the effects of globalization worse for the United States?
A. China and India raise the value of their currencies. B. China and India move up the value-added chain. C. Wages in China and India rise, leading to more outsourcing. D. China and India move down the value-added chain.