A corporation issues a three year bond with a coupon of $50 and a face value of $1000. Immediately after being issued, market interest rates decline to 4%. What is the price of the bond? Report your answer to the nearest dollar
What will be an ideal response?
Since the price of the bond equals its present value, the price is $50/1.04 + $50/(1.04)2 + $1050/(1.04)3 = $1029.
Economics
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Command-and-control means of regulation achieve their results more slowly but more reliably
Indicate whether the statement is true or false
Economics
If Japanese producers sell computer chips at a higher price in the United States than in Japan, and if there is no cost difference in producing or transporting the chips, the Japanese producers would be practicing
A) cartel pricing. B) price discrimination. C) simple monopoly behavior. D) price sampling.
Economics