Exam 4: The Meaning of Interest Rates

To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process of

The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today.

Since the early 1950s,nominal interest rates and real interest rates in the United States

The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value.

An equal decrease in all bond interest rates

When the ________ interest rate is low,there are greater incentives to ________ and fewer incentives to ________.

A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of