If a bond pays a fixed return of $500 a year and the current interest rate has risen from 5 percent to 10 percent, then the bond price must have:
a. risen from $25 to $50.
b. fallen from $50 to $25.
c. risen from $5,000 to $10,000.
d. fallen from $10,000 to $5,000.
e. risen from $1,000 to $5,000.
d
Economics
You might also like to view...
Automatic stabilizers were clearly in evidence during the recession of 2007-2009 as
A) tax revenues and transfer payments both decreased. B) tax revenues decreased. C) tax revenues increased. D) transfer payments decreased.
Economics
The Fed is structured as an agency of the executive branch, with the Chairman of the Fed answering directly to the President.
a. true b. false
Economics