Every component of M2 is a component of M1, but not all the components of M1 are included in M2

A newly issued bond with a face value of $8,000 and no coupon payments is priced at $7,000 . The bond will mature in one year. What is the yield on this bond?

a. $1,000 b. 12.5 percent c. 14.3 percent d. $272.73 e. It depends on the interest rate

The theory of adaptive expectations holds that people form the most accurate possible expectations about the future using all information available to them

a. True b. False Indicate whether the statement is true or false