A Bond with No Expiration Date Is Priced at $10,000

question 217

True/False

A bond with no expiration date is priced at $10,000 when the interest rate in the economy is 6 percent. If the interest rate falls to 5.5
percent, then this bond's price would decrease.

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Definitions:

Slave Labor

Work exerted from individuals against their will under threat of punishment, often without pay, historically used in the context of slavery.

British Navigation Acts

A series of laws enacted by the British Parliament that regulated trade and commerce between England and its colonies.

Wealth of Nations

A seminal work by economist Adam Smith published in 1776, which lays out the foundational concepts of classical economics, including the division of labor and free market principles.

John Locke

A 17th-century English philosopher known for his contributions to liberalism, political theory, and his theories of mind and consciousness.