IBM Is Planning to Issue $1,000 Bonds with a Stated

question 38

Multiple Choice

IBM is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15,2022.If interest rates rise in the economy so that similar financial investments pay 9%,IBM will:

• A)not be able to issue the bonds because no one will buy them.
• B)receive a higher issue price to compensate buyers for the lower stated interest rate.
• C)have to accept a lower issue price to attract buyers.
• D)have to reprint the bond certificates to change the stated interest rate to 9%.

Recognize the effects of the number of firms in an oligopoly on market outcomes.

Understand the concept of Nash equilibrium in strategic decision-making.

Identify the conditions under which cartels are more or less likely to achieve monopoly outcomes.

Describe strategic interactions among firms in oligopolies and their outcomes.

---

Definitions:

Child Free

Pertains to individuals or couples who choose not to have children by choice for personal, environmental, or lifestyle reasons.

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, often used as a fertility treatment.

Multiple Births

A pregnancy that results in the birth of more than one child, such as twins or triplets.

First Trimester Abortion

The termination of a pregnancy during the first 12 weeks or the first three months.