Solve the Problem. -Calculate the Annual Interest for a $1000 Treasury Bond with Treasury

question 83

Multiple Choice

Solve the problem.
-Calculate the annual interest for a $1000 Treasury bond with a current yield of 3.4% that is quoted at 116.4 points.

• A)$39.58
• B)$30.60
• C)$27.20
• D)$47.49

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Definitions:

Least-Cost Combination

A production point where the mix of inputs results in the lowest possible cost for a given output level.

Input Prices

The prices of the resources (like labor, materials, and capital) used in the production of goods or services.

User Cost

The cost of using a resource, which includes the opportunity cost of not keeping the asset intact or not using it for an alternative purpose.

Rental Rate

Cost per year of renting one unit of capital.