Multiple Choice
Suppose you buy a bond with a face value of $1,000 for $800. What is the interest rate you receive on the bond?
A) 0.8%
B) 1.25%
C) 20%
D) 25%
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q24: Alexa keeps $500 readily accessible in her
Q25: Suppose the Fed conducts an open market
Q26: An increase in the money supply will
Q27: An increase in the demand for bonds<br>A)
Q28: Suppose you sell a $1,000 bond that
Q30: Suppose present interest rates are relatively high.
Q31: Use the following to answer questions .<br>Exhibit:
Q32: Suppose the government issues bonds to finance
Q33: An increase in the supply of money
Q34: An increase in the demand for bonds