Suppose a Basket of Goods and Services Has Been Selected

question 174

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the CPI.In 2002,the basket's cost was $80;in 2008,the basket's cost was $92;and in 2010,the basket's cost was $108.The base year must be

• A)2002.
• B)2008.
• C)one of the years between 2008 and 2010.
• D)The base year cannot be determined from the given information.

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Definitions:

Yield To Maturity

The total expected return on a bond if held until it matures, considering both interest payments and capital gains or losses due to the difference between purchase price and maturity value.

Semiannually

Taking place twice annually, often every six months.

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of its face value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments and interest.