The Return on a 10 Percent Coupon Bond That Initially

question 50

Multiple Choice

The return on a 10 percent coupon bond that initially sells for $1,000 and sells for $900 one year later is

• A) -10 percent.
• B) -5 percent.
• C) 0 percent.
• D) 5 percent.

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Definitions:

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.

Consumption Changes

Variations in the amount and types of goods and services used by households over time.

Barley Crop

A cereal grain that is used worldwide as fodder for animals, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.