A 150% return in Belarus is higher than a 15% dollar return in the U.S

A) because arbitrage opportunities exist.
B) when the inflation controls are suspended in Belarus.
C) it depends on whether these are nominal or real returns.
D) regardless of nominal or real returns.

Answer: C

Business

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Farmer Company issues $20,000,000 of 10-year, 9% bonds on March 1, 2012 at 97 plus accrued interest. The bonds are dated January 1, 2012, and pay interest on June 30 and December 31. What is the total cash received on the issue date?

a. $19,400,000 b. $20,450,000 c. $19,700,000 d. $19,100,000

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Premium mode is a term used to describe the

A) premium past due B) method of payment C) frequency of the premium payment D) premium paid

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