You have a bond that pays 125 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) The likelihood that the firm issuing your bond will default on debt increases.
B) Coupon payments on newly-issued bonds rise to 140 per year.
C) The price of a share of stock in the company falls.
D) Coupon payments on newly-issued bonds fall to 75 per year.
Question 2
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity demanded?
A) 5 units B) 10 units C) 15 units D) 20 units
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