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The Year-Over-Year Growth Rate of Real GDP in the United

question 40

Essay

The year-over-year growth rate of real GDP in the United States in the fourth quarter of 2012 was 1.5%. About how long will it take for the economy to double in size at this rate?


Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Par Value

The face value of a bond or a stock, as stated by the issuing company.

Strike Price

The predetermined price at which an option can be exercised.

Time-to-Maturity

The remaining period until a financial instrument, such as a bond or loan, reaches its due date and must be repaid in full.

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