« previous next »

Author Question: When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, what ... (Read 100 times)

crazycityslicker

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, what happens?
 
  A) Older bonds will sell for more than their face value.
  B) Older bonds can still be sold at their face value.
  C) The market price of the older bond falls in the secondary market.
  D) The market price of the older bond rises in the secondary market.

Question 2

Refer to Figure 5-16. Suppose Amit and Bree know each other's preferences so that it is not possible for one to deceive the other.
 
  Which of the following statements best describes the circumstances under which the optimal quantity of street lights could be achieved?
  A) The optimal quantity will be installed only if Bree pays for the entire installation cost.
  B) The optimal quantity will be installed only if the two parties agree to pay according to their willingness to pay as indicated by their respective demand curves.
  C) Because there are only two consumers, it is likely that private bargaining will result in the optimal quantity being installed.
  D) The optimal quantity will be installed only if the two parties split the cost of installation equally.


shaquita

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

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?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

A nurse adjusts the rate of a client’s IV. A nurse adjusts the rate of a client’s IV.
Some biologically important hydrogen bonds Some biologically important hydrogen bonds
An Extinct Vertebrate and a Modern Relative An Extinct Vertebrate and a Modern Relative
Relative Size of the Body’s Fluid Compartments Relative Size of the Body’s Fluid Compartments
Older adulthood can be a time of independence and exploration as responsibilities diminish and the ... Older adulthood can be a time of independence and exploration as responsibilities diminish and the ...
Relationship between Income Inequality and the Desired Tax Rate Relationship between Income Inequality and the Desired Tax Rate
Video: Endocytosis -Types and Phagocytosis

For a complete list of videos, visit our video library