Author Question: If you buy for 100 a bond that pays 4.57 percent in annual interest and the current interest yield ... (Read 85 times)

tth · **on:** Jun 30, 2018

If you buy for 100 a bond that pays 4.57 percent in annual interest and the current interest yield on the bond rises to 5.13 percent, then the price of the bond has fallen.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A price floor is binding when it is set
a. above the equilibrium price, causing a shortage.
b. above the equilibrium price, causing a surplus.
c. below the equilibrium price, causing a shortage.
d. below the equilibrium price, causing a surplus.