Figure 7-21 -Refer to Figure 7-21.When the Price Is P1,area B+C Represents

question 118

Multiple Choice

Figure 7-21
-Refer to Figure 7-21.When the price is P1,area B+C represents

• A)total surplus.
• B)producer surplus.
• C)consumer surplus.
• D)None of the above is correct.

---

Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, taking into account both current interest payments and the gain or loss upon redemption.

7% Bond

A bond that pays 7% interest annually on its face value.

Current Yield

A financial ratio that shows the annual dividend rate of a security divided by its current market price.

9% Bond

A bond that pays an annual interest rate of 9% to its holder.