Author Question: What is the current market price of a bond that pays 200 per year indefinitely and has a current ... (Read 85 times)

sheilaspns · **on:** Jun 30, 2018

What is the current market price of a bond that pays 200 per year indefinitely and has a current yield of 16 percent?
a. 800
b. 1250
c. 3,200
d. 8,000
e. 12,500

Question 2

Assuming that the demand for a good has increased and the supply of a good has decreased by the same amount, then:
a. The change in price is determinate but the change in quantity is indeterminate.
b. The change in quantity is determinate but the change in price is indeterminate.
c. Both the change in price and the change in quantity will be indeterminate.
d. Neither the change in price nor the change in quantity will be indeterminate.