--%>

Determine annual interest rate

If all US Treasury bonds are perpetuities that annually pay the sum of one thousand and 00/100 dollars [$1000] each year, always, to the holder of this bond starting one year from today and if the current market price of such bond were $10,000, this would be generating annual an annual interest rate of: (1) one percent. (2) five percent. (3) ten percent. (4) 12.5 percent. (5) twenty percent.

How can I solve my Economics problem? Please suggest me the correct answer.

   Related Questions in Microeconomics

  • Q : Law of Distribution by Pareto “ Law of

    “Law of Distribution” given by Vilfredo Pareto asserts that the: (w) relative prices for goods reflect how intensively labor is used as an input. (x) the percentages of national income going to labor and to capital is a co

  • Q : What is technological advance Broadly

    Broadly defined, technological advance: A) can occur in either the short run, long run, or very long run. B) comprises new and improved goods and services and new and improved ways of producing or distributing them. C) includes invention, but not innovation or diffusi

  • Q : Right-to-Work Laws-Union membership Can

    Can someone help me in finding out the right answer from the given options. When it is illegal to need a union membership as the condition of employment for a firm, then the firm: (1) Needs all the employees to sign yellow dog contracts. (2) Can’t sign an agency

  • Q : Problem on market supply of labor Can

    Can someone please help me in finding out the accurate answer from the following question. The marginal resource cost for monopsonist in the labor market which can’t wage discriminate: (1) Is perfectly elastic. (2) Is perfectly inelastic. (3) Lies above the mark

  • Q : Moral Hazard-Risk of money When you

    When you paid a friend’s entrance fee for the poker tournament and agreed to divide any winnings and then your friend played sloppily as your money is at risk, not his, and then you have suffered since of: (1) Adverse selection. (2) Fraudulent information. (3) I

  • Q : Ultimate lenders and borrowers

    Financial intermediation is a process wherein financial institutions: (w) incur substantial outflows of funds. (x) facilitate financial flows by eventual lenders to eventual borrowers. (y) face rigid reserve requirement ratios. (z) experience "runs" w

  • Q : Reducing elasticities of demands by

    By product differentiation, firms try to increase the: (w) demands for their products, when reducing elasticities of demands. (x) supply elasticities of competing products. (y) price elasticity of the demand for their products. (z) marginal costs of t

  • Q : Break Even Income A marginal tax rate

    A marginal tax rate of 50 percent and an income floor of $6,500 yield a break even income of: (w) $3,250. (x) $6,500. (y) $9,750. (z) $13,000. I need a good answer on the topic of Economics

  • Q : Relatively price elastic when supply

    Even though a drought decreases supply from S1 to S0, at each point along both of such supply curves, the supply of tanks of dehydrated water: (i) perfectly price elastic. (ii) relatively price elastic. (iii) unitarily price elastic. (iv) relativ

  • Q : NOT operating area of monopolistic firm

    Monopolistic competitors within long-run equilibrium do NOT operate where: is (1) MR = MC. (2) P = ATC. (3) P > MC. (4) MSB > MSC. (5) economic profits are realized. How can I solve my Economics