What Price Will Be Paid for a Canadian Government Bond

question 3

Multiple Choice

What price will be paid for a Canadian government bond with an ask price of 122.28?

• A)$1,122.28
• B)$1,228.88
• C)$1,280.00
• D)$1,222.80

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Definitions:

Not Excludable

A characteristic of certain goods where it is not feasible to prevent individuals from consuming the good, such as public parks.

Not Rival

Refers to a good's characteristic where one person's consumption does not reduce the availability of the good for consumption by others.

Common Resources

Natural or man-made resources that are not owned by anyone, are available for use by more than one person, and can be depleted.

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.