The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond?
A. 17.8 percent
B. 16.7 percent
C. 15 percent
D. 11.2 percent
B. 16.7 percent
Economics
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You sign a contract to pay $1000 next year for the refrigerator you bought today. The rate of inflation is 10% and the real interest rate is 7%. Alternatively, you could pay $875 today. What should you do to save the most money?
What will be an ideal response?
Economics
Given the information above, the demand is
a. unitary. b. indeterminate. c. elastic. d. inelastic.
Economics