Question: Please help me check the answer is correct? B 2.C 3.B 4.C 5.A 1. Which of the following bonds would you prefer to be buying?

 Please help me check the answer is correct?B 2.C 3.B 4.C

Please help me check the answer is correct?

  1. B 2.C 3.B 4.C 5.A

5.A 1. Which of the following bonds would you prefer to be

1. Which of the following bonds would you prefer to be buying? A. a $5,000 face-value security with a 6 percent coupon selling for $4,000 B. a $5,000 face-value security with a 7 percent coupon selling for $4,000 C. a $5,000 face-value security with a 5 percent coupon selling for $4,200 D. a $5,000 face-value security with a 6 percent coupon selling for $4,200 2. In the market for money, an interest rate above equilibrium results in an excess money and the interest rate will A. demand for; rise B. demand for; fall C. supply of; fall D. supply of; rise 3. If the expected path of 1-year interest rates over the next five years is 3 percent, 6 percent, 3 percent, 2 percent, and 4 percent then the expectations theory predicts that today's interest rate on the four-year bond is A. 3.2 percent. B. 3.5 percent. C. 3.6 percent. D. 3.8 percent. 4. With an interest rate of 5 percent, the present value of $100 next year is approximately A. $105. B. $100. C. $95. D. $90. 5. A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A. coupon bond. B. simple loan. C. fixed-payment loan. D. discount bond

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