Multiple Choice
A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1,000 at a price of $10,000.If the interest rate in the economy is now 12.5 percent a year and you want to sell the bond, the maximum price that you can get for it is
A) $7,500.
B) $8,000.
C) $9,750.
D) $12,500.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: The benchmark interest rate that banks use
Q25: The reserves of commercial banks are assets
Q26: The interest rate that banks use as
Q28: Which of the following would not be
Q30: The prime interest rate<br>A)affects investment spending, while
Q32: The desire to hold money for transactions
Q33: Which of the following combinations of Fed
Q34: When the Fed does repos and reverse
Q133: Beginning in 2008, the Fed was allowed
Q187: Assume that a single commercial bank has