If a bond pays 50 a year to its holder and you buy it for 200, what is your interest rate? What ...

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 78 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

Need homework help now?

Ask unlimited questions for free

Ask a Question

« previous next »

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.