Use the Following to Answer Question

question 96

Multiple Choice

Use the following to answer question:
-(Figure: Consumer Surplus III) In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.

• A)$50
• B)$59
• C)$124
• D)$144

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Annual Coupon Bond

A bond that pays interest to the holder on an annual basis, typically as a fixed percentage of its face value.

Face Value

The original cost of a financial instrument as stated on the certificate or document, not influenced by the market price.

Maturity

The date on which a financial instrument, such as a bond or loan, reaches its due date and the principal amount must be repaid.