If Erik lends Dan $5,000 and Dan agrees to repay Erik $6,000 in 1 year's time, the $5,000 is the
A) interest rate.
B) compounding amount.
C) principal.
D) real return.
Correct Answer:
Verified
Q1: The interest rate is the
A)cost to borrowers
Q2: _ represents the value today of funds
Q4: Discounting answers which of these questions?
A)What is
Q5: The periodic payment made to bondholders is
Q6: Coupon payments are equal to the
A)coupon rate
Q7: Bonds generally share the following characteristics:
A)a maturity
Q8: A bond sells at _ because interest
Q9: If a bond is sold at a
Q10: In general, if bond prices are rising,
Q11: In general, if interest rates are falling,
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