A bond has a current market value of $800. The holder of the bond will receive a single payment of $1,000 one year from now. The interest rate is 10 percent. The effective yield on the bond is:
A) $200.
B) 10 percent.
C) 25 percent.
D) negative.
E) The yield cannot be determined with the information provided.
C
Economics
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From 1950-2014 the price level in the United States increased more than
A) twofold. B) threefold. C) sixfold. D) tenfold.
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Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to
A) $405 billion. B) $420 billion. C) $435 billion. D) $440 billion.
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