Author Question: If you purchased a newly issued 30-year bond from Google with a face value of 3,000 and a coupon ... (Read 175 times)

Anajune7 · **on:** Jun 29, 2018

If you purchased a newly issued 30-year bond from Google with a face value of 3,000 and a coupon payment of 6 percent, Google would pay you

A) 180 per year for 30 years plus 3,000 at the end of the 30th year.
B) 100 per year plus 6 percent per year for 30 years.
C) 100 per year for 30 years plus 3,000 at the end of the 30th year.
D) 180 per year for 30 years.

Question 2

Refer to Figure 17-7. Consider the Phillips curves depicted in the graph above. The Fed announces its intention to decrease inflation from 10 percent to 5 percent per year, and it succeeds.

If the assumptions of the rational expectations school hold true, and the Fed's announcement is credible, the rate of unemployment will be ________ in the short run.
A) less than 5.5 percent B) 5.5 percent
C) between 5.5 and 7.5 percent D) 7.5 percent