If a $1000 face value coupon bond has a coupon rate of 3.75 percent, then the coupon payment every year is

Business investment is most similar to what form of consumer expenditures and why?

A) consumer nondurables since they are "used up" in producing consumer welfare B) consumer durables since they accelerate consume welfare C) consumer durables since they may be treated as a form of household saving D) Both A and B are correct.

Suppose a mechanic uses $150,000 of his own money to start a business. The rate of interest he could earn in a savings account is 5 percent, and the rate of interest he could earn by investing in bonds is 8 percent. What is the opportunity cost of capital when the mechanic uses his money to start his own business?

a. $7,500/year b. $8,000/year c. $19,500/year d. $12,000/year e. $150,000/year