Question 1
A bond with a face value of $1,000
◦ will always sell for more than the face value.
◦ will always sell for less than the face value.
◦ will always sell for exactly the face value.
◦ will sell for the market determined price.
Question 2
Related to the
Economics in Practice on p. 522: If the estate in the Chekhov play
Uncle Vanya is earning 2 percent, yet a potential buyer wants to earn more than 2 percent, the sales price of the estate would have to
◦ fall.
◦ rise.
◦ double.
◦ No price will bring a higher return.