-Refer to the Above Information to Answer This Question

question 25

Multiple Choice

-Refer to the above information to answer this question.If both demand and supply increase by 40 units,what will be the new values of equilibrium price and quantity?

• A)$40 and 140.
• B)$50 and 140.
• C)$60 and 100.
• D)$60 and 140.
• E)The price will be $50 but equilibrium is not possible.

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Definitions:

Annual Coupon

The annual interest payment made to bondholders, typically expressed as a percentage of the bond's face value.

Par Value

A nominal value assigned to a share of stock or bond that is typically printed on the face of the certificate.

Market Yield

The return on investment for a security currently traded in the market, often referring to bonds and calculated by considering the annual interest payments and the market price.

Negative Bond Covenant

A condition in a bond agreement that forbids certain activities by the issuer, aimed at protecting the interests of the bondholders.