When the coupon rate on newly issued bonds increases from 5 percent to 6 percent, the prices of existing bonds:
A. increase.
B. decrease.
C. increase only if the coupon rate is less than 6 percent.
D. remain unchanged.
Answer: B
Economics
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Economic models are:
A) created and used in order to duplicate virtually every aspect of the real world. B) useless if they are simple. C) made generally of wood, plastic, and/or metal. D) built using assumptions.
Economics
Refer to Table 16-2. Which of the following statements is true about the two markets?
A) The demand in Middle Fall is less income elastic than the demand in West Fall. B) The demand in Middle Fall is more price elastic than the demand in West Fall. C) The demand in Middle Fall is more income elastic than the demand in West Fall. D) The demand in Middle Fall is less price elastic than the demand in West Fall.
Economics