Author Question: If a bond pays a fixed return of 500 a year and the current interest rate has risen from 5 percent ... (Read 113 times)

AEWBW

  • Hero Member
  • *****
  • Posts: 579
If a bond pays a fixed return of 500 a year and the current interest rate has risen from 5 percent to 10 percent, then the bond price must have:
 a. risen from 25 to 50.
  b. fallen from 50 to 25.
  c. risen from 5,000 to 10,000.
  d. fallen from 10,000 to 5,000.
  e. risen from 1,000 to 5,000.

Question 2

An increase in demand for a product and a reduction in the costs of production would:
 a. increase the equilibrium quantity and increase the equilibrium price.
 b. increase the equilibrium quantity and decrease the equilibrium price.
 c. increase the equilibrium quantity and cause an indeterminate change in the equilibrium price.
  d. decrease the equilibrium quantity and cause an indeterminate change in the equilibrium price.



brittiany.barnes

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

For a complete list of videos, visit our video library