Answer the Question on the Basis of the Following Information

question 54

Multiple Choice

Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000;bond fixed annual interest payment = $100;bond annual interest rate = 10 percent. Refer to the given information.If the price of this bond falls by $200,the interest rate will:

• A) rise by 2.5 percentage points.
• B) rise by 5 percentage points.
• C) fall by 2.5 percentage points.
• D) fall by 5 percentage points.

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Definitions:

DP Camps

Displaced Persons (DP) Camps were facilities in Europe for refugees and homeless individuals in the aftermath of World War II.

Welfare State

A social system in which the government takes responsibility for the well-being of its citizens by providing services such as healthcare, education, and financial assistance.

Consensus

Consensus is the general agreement reached by a group as a whole, often used in the context of decision-making processes where unity and collective support are sought.