When Health Benefit Costs Rise for a Single Employer in a Market,the

question 61

True/False

When health benefit costs rise for a single employer in a market,the employer will likely be able to pass along the benefit costs to workers,even if the workers valuation of the benefit has NOT changed. (Who Pays for Benefits?)

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Definitions:

Coupon Rate

The yearly interest rate that is paid on a bond, shown as a percentage of its nominal value.

Bond Indenture

A legal document that details the terms and conditions between a bond issuer and the bondholders.

Annual Interest Rate

The percentage rate charged on a loan or earned on an investment over the period of one year.

Debt-to-equity Ratio

This financial indicator reveals the relative amounts of debt and equity used by a company to support its asset base.