Use the Following Information to Answer the Question(s)below

question 25

Multiple Choice

Use the following information to answer the question(s) below.
-The price today of a two-year default-free security with a face value of $1000 and an annual coupon rate of 5% is closest to:

• A)$1002.78.
• B)$1003.31.
• C)$1028.50.
• D)$1028.61.

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Definitions:

Employment Act of 1946

A landmark US legislation aimed at promoting maximum employment, production, and purchasing power, marking a commitment by the federal government to ensure economic stability.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.

Equilibrium Price Level

This is the price point at which the demand for goods matches the supply, stabilizing the economic market without excess surplus or shortage.

Aggregate Demand Curve

Illustrates the total demand for all goods and services in an economy at various price levels, holding all else equal.