Suppose Jane needs $1,000,000 in 20 years and can save at an interest rate of 7%.How much money must she need to save now?

Question 21 options:

$202,652

$298,021

$756,205

None of the above

Question 22(1 point)

Suppose X Corp. issued one-year discount bonds with a face value of $20,000 and the bonds were sold for $18,500.What was the interest rate for these one-year discount bonds?

Question 22 options:

7.50%

8.11%

9.57%

None of the above

Question 23(1 point)

Suppose Tyson holds some bonds issued by X Corp.If those bonds become more risky, then their price will _____.

Question 23 options:

increase

decrease

not change

Question 24(1 point)

Suppose Tyson holds some bonds issued by X Corp.If those bonds become more risky, then their interest rate will _____.

Question 24 options:

increase

decrease

not change

Question 25(1 point)

In the model of the market for loanable funds, which of the following best describes why the demand curve is downward sloping?

Question 25 options:

The higher the interest rate, the less likely households are to spend

The higher the interest rate, the less likely firms are invest

The higher the interest rate, the more likely firms are to borrow

The higher the interest rate, the less likely households are to save