This topic contains a solution. Click here to go to the answer

Author Question: You buy a bond for 1,000 from the federal government, which guarantees that you will receive 70 a ... (Read 66 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
You buy a bond for 1,000 from the federal government, which guarantees that you will receive 70 a year forever. Thus, 7 percent was the market rate of interest when you bought the bond. Suppose that immediately after you buy the bond, the market rate of interest goes to 10 percent. The market value of your bond
 a. could be more or less than 1,000
  b. will be less than 1,000
  c. will be more than 1,000
  d. will remain unchanged
  e. will be 1,000

Question 2

If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has
 a. appreciated, since its value has increased
  b. appreciated, since its value has declined
  c. depreciated, making French goods more expensive in U.S. dollars
  d. depreciated, since its value has declined
  e. depreciated, since its value has increased



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juwms

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

B

Answer to Question 2

A




maegan_martin

  • Member
  • Posts: 532
Reply 2 on: Jun 30, 2018
Gracias!


nguyenhoanhat

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

For a complete list of videos, visit our video library