Assume That You Purchase a $1,000 Corporate Bond That Pays

question 79

Multiple Choice

Assume that you purchase a $1,000 corporate bond that pays 5.5 percent interest.What is the amount of interest that you receive each year?

• A)$1,000
• B)$1,055
• C)$55
• D)$550
• E)$0

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Definitions:

Economic Efficiency

A condition in which all resources are distributed in the most efficient manner, ensuring that every individual or organization benefits optimally, with minimal waste and inefficiencies.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

External Benefit

A benefit that results from an activity but affects uninvolved third parties who did not choose to incur that effect, often leading to market inefficiencies.