If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$50 / (1 + .08)3] + [$500 / (1 + .08)3]," which of the following is correct?
A) The face value is $500, the coupon is $50, and the coupon will mature in 3 years.
B) The face value is $50, the interest rate you need is 8 percent, and the coupon will mature in 3 years.
C) The coupon is $50, the interest rate you need is 1.08 percent, and the coupon will mature in 3 years.
D) The face value is $500, the interest rate you need is 3 percent, and the coupon will mature in 8 years.
A
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To test for randomization when Xi is binary,
A) you regress Xi, on all W's and compute the F-statistic for testing that all the coefficients on the W's are zero. (The W's measure characteristics of individuals, and these are not affected by the treatment.) B) is not possible, since binary variables can only be regressors. C) requires reordering the observations randomly and re-estimating the model. If the coefficients remain the same, then this is evidence of randomization. D) requires seeking external validity for your study.
The unemployment rate equals the number of persons:
A. unemployed divided by the number employed. B. unemployed divided by the number in the labor force. C. unemployed divided by the population age 16 and over. D. not working divided by the population age 16 and over.