The Interest Rate Is 9% and There Is No Inflation

question 23

True/False

The interest rate is 9% and there is no inflation.A bond is available that can be redeemed either after one year or after two years.If it is redeemed after one year, the investor gets $109.If it is redeemed after two years, the investor gets $115.54.The investor gets no other payments than what she receives when she redeems the bond.In equilibrium, investors will be willing to pay more than $100 for this bond.

---

Definitions:

Norms

Established standards of behavior or guidelines that are considered acceptable within a group or society.

Observable Culture

The visible and tangible aspects of an organization's culture, such as rituals, symbols, and behaviors.

Performance Orientation

A focus on outcomes and results, prioritizing performance improvement and achievement of objectives.

Encourage Innovation

The act of motivating and promoting creative thinking and the development of new ideas, products, or ways of doing something.