Refer to the given information. If the price of this bond increases to $1,250, the interest rate will:
Answer the question on the basis of the following information for a bond having no expiration
date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest
rate = 10 percent.
A. fall to 9 percent.
B. fall to 8 percent.
C. rise to 11 percent.
D. rise to 12 percent.
B. fall to 8 percent.
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What happened to the measure of money, M0, which includes only cash, bank reserves, and deposits at the Federal Reserve during the crisis?
a. It shrank measurably. b. It expanded slightly. c. It more than doubled. d. There was no change in MO.
The benefit from an additional unit of a good or service that the consumer of that good or service receives is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) opportunity cost.