If the Equilibrium Price for a Good Is $10 and Consumers

question 205

True/False

If the equilibrium price for a good is $10 and consumers are willing to pay $12 for the good, then consumer surplus exists.

Analyze the effects of market interest rates on bond prices and interest expenses.

Calculate interest expenses and premium or discount amortization for bonds.

Understand the characteristics and financial implications of floating-rate debt.

Recognize the impact of changes in interest rates on the market value of floating-rate debt.