If you purchased a newly issued 30-year bond from American Airlines with a face value of $1,000 and a coupon payment of 3 percent, American Airlines would pay you
A) $33.33 per year plus 3 percent per year for 30 years.
B) $30 per year for 30 years.
C) $30 per year for 30 years plus $1,000 at the end of the 30th year.
D) $33.33 per year for 30 years plus $1,000 at the end of the 30th year.
C
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Which of the following examples illustrates a proportional income tax?
a. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,000 in taxes. b. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $500 in taxes. c. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $800 in taxes. d. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,200 in taxes.
In the short run, when a firm produces zero output, total cost equals
A. Marginal costs. B. Zero. C. Variable costs. D. Fixed costs.