The Required Rate of Return on a Certain Bond Changes

question 18

Multiple Choice

The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. The bond price elasticity of this bond is ​

• A)- 0.36.
• B)- 0.44.
• C)- 0.55.
• D)- 0.67.
• E)0.67.

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Definitions:

Minimum-Wage Laws

Regulations establishing the lowest hourly wage that employers can legally pay their workers, aimed at protecting low-income workers.

Teenage Unemployment

Refers to the unemployment rate among teenagers, indicating the proportion of the teenage workforce that is not currently employed but is actively seeking employment.

Bureau of Labor Statistics

An agency of the U.S. government tasked with the collection and analysis of data concerning the labor market, employment conditions, and fluctuations in prices.

Employed

Individuals who are currently working in a job, including both full-time and part-time positions.