What is the current market price of a bond that pays $200 per year indefinitely and has a current yield of 16 percent?
A) $800
B) $1250
C) $3, 200
D) $8, 000
E) $12, 500
Correct Answer:
Verified
Q80: The figure given below depicts the equilibrium
Q81: Suppose a bond sells for $2, 000
Q82: The transactions demand for money exists because:
A)people
Q83: If a bond pays a fixed return
Q84: A change in the interest rate does
Q86: An excess demand for money will result
Q87: In the figure given below panel A
Q88: In the figure given below panel A
Q89: An increase in the money supply will
Q90: Suppose the interest rate on a bond
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