A Bond's Price Is $80 and the Bond Pays $8

question 69

Multiple Choice

A bond's price is $80 and the bond pays $8 in interest every year.The bond's interest rate is ________.

• A)80 per cent
• B)4 per cent
• C)8 per cent
• D)10 per cent
• E)None of the above is correct.

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Definitions:

Total Revenue

The total amount of money a company receives from its sales of goods or services before any expenses are subtracted.

Pure Monopoly

A market structure where a single firm has exclusive control over the supply and pricing of a particular product or service, with no close substitutes available.

Sole Seller

A market situation where only one seller exists for a particular product or service, often referred to as a monopoly.

Pure Monopoly

A market structure where a single supplier dominates the market, with no close substitutes for the product or service offered, leading to high control over prices.