You have a bond that pays $60 per year in coupon payments. Which of the following would result in a decrease in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $75 per year.
B) The likelihood that the firm issuing your bond will default on debt decreases.
C) Coupon payments on newly-issued bonds fall to $40 per year.
D) The price of a share of stock in the company rises.
A
Economics
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Necessities tend to have more inelastic demands than luxuries
Indicate whether the statement is true or false
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What is one way to adjust the CPI for substitution bias?
A) Use the Paasche index. B) Use the Laspeyres index. C) Multiply the Paasche Index and the Laspeyres index. D) Take the geometric mean of the Paasche index and the Laspeyres index.
Economics