« previous next »

Author Question: If a bond pays 50 a year to its holder and you buy it for 200, what is your interest rate? What ... (Read 88 times)

faduma

  • Hero Member
  • *****
  • Posts: 528
on: Jun 29, 2018
If a bond pays 50 a year to its holder and you buy it for 200, what is your interest rate?
 
  What will be an ideal response?

Question 2

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is
 
  A) 0.2. B) 0.5. C) 0.8. D) 0.7. E) 0.6.


meltdown117

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jun 29, 2018
Answer to Question 1

The interest rate is (50  200 )  100 = 25.0 percent.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce
Dragon Chinese new year 2023 Dragon Chinese new year 2023
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ... One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ...
Ionic Bond: Sodium Chloride Ionic Bond: Sodium Chloride
Video: Lower Limb Arteries Animation

For a complete list of videos, visit our video library