The price of a coupon bond is determined by taking the present value of:
A. all of the bond's payments.
B. the coupon payments and adding this to the face value.
C. the bond's final payment and subtracting the coupon payments.
D. the bond's final payment.
Answer: A
You might also like to view...
Based on the above table, the unemployment rate is
A) 10 percent. B) 11.1 percent. C) 7.1 percent. D) 5.4 percent. E) 8.6 percent.
Answer the following statement true (T) or false (F)
1) In maximizing profit, a firm will always produce that output where total revenues are at a maximum. 2) In the short run, a competitive firm will always choose to shut down if product price is less than the lowest attainable average total cost. 3) A competitive firm will produce in the short run so long as its price exceeds its average fixed cost. 4) The short-run supply curve slopes upward because producers must be compensated for rising marginal costs.