Two corporations (TruBlu and FlyByNight) issue perpetuities that both pay $1,000 per year, but the market price of the FlyByNight bonds are much lower
The difference in the bond prices may reflect the belief that the bonds issued by FlyByNight are ________ risky when compared to the TruBlu bonds. A) less
B) more
C) equally
D) none of the above
B
Economics
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If prices rise by 4% in a year and nominal wages increase by only 2%, then real wages will
A. increase by 2%. B. decrease by 4%. C. decrease by 2%. D. decrease by 6%.
Economics
Unemployment compensation is:
A. an automatic stabilizer because it rises as income increases, slowing an economic expansion. B. an automatic stabilizer because it falls as income decreases, slowing an economic contraction. C. not an automatic stabilizer. D. an automatic stabilizer because it falls as income increases, slowing an economic expansion.
Economics