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Author Question: When the interest rate falls, bond values (Read 45 times)

amal

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on: Apr 19, 2019

Question 1

Related to the 
Economics in Practice on p. 522: If the estate in the Chekhov play 
Uncle Vanya is earning 2 percent, the interest rate on suitable securities is 5 percent, and the securities are a better risk than the estate, a potential buyer should require the price of the estate be ________ until the equivalent return on the estate is ________.


◦ raised; 5 percent
◦ lowered; 5 percent
◦ lowered; greater than 5 percent
◦ raised; greater than 5 percent

Question 2

When the interest rate falls, bond values


◦ rise.
◦ fall.
◦ are unchanged because the interest rate paid on a bond is fixed.
◦ will either increase or decrease depending on the type of bond.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by amal on Apr 19, 2019

diana chang

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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amal

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

T4T

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Reply 3 on: Yesterday
Excellent

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