This topic contains a solution. Click here to go to the answer

Author Question: Suppose that a bond promises to pay its holder 100 a year forever. If the price of the bond ... (Read 121 times)

jman1234

  • Hero Member
  • *****
  • Posts: 560
Suppose that a bond promises to pay its holder 100 a year forever. If the price of the bond increases from 1,000 to 1,250, then the interest rate on the bond
 
  A) falls from 10 percent to 8 percent.
  B) rises from 8 percent to 10 percent.
  C) does not change because it is not affected by the price of the bond.
  D) falls from 10 percent to 6 percent.

Question 2

Suppose a country is producing 20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to 80 million?
 
  A) 14
  B) 7
  C) 4
  D) 30



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brbarasa

  • Sr. Member
  • ****
  • Posts: 308
Answer to Question 1

A

Answer to Question 2

A




jman1234

  • Member
  • Posts: 560
Reply 2 on: Jun 29, 2018
:D TYSM


pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

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?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

For a complete list of videos, visit our video library