The Interest Rate on a Bond Is

question 106

Multiple Choice

The interest rate on a bond is

• A) the difference between the face value and the bond price, expressed as a percentage of the face value.
• B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
• C) the ratio of the face value and the bond price, expressed as a percentage.
• D) the difference between the face value and the yield, expressed as a percentage of the bond price.

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Definitions:

High Tariffs

Government-imposed taxes on imported or exported goods intended to protect domestic industries, but can lead to international trade disputes.

Freedom From Want

A concept popularized by President Franklin D. Roosevelt as one of the Four Freedoms, referring to the right to an adequate standard of living and economic security.

Consumerism

The theory or policy that promotes an increasing consumption of goods as an economic policy or social system.

Standard Of Living

Refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.