--%>
Assignment Help - homework help

Problem on bonds and interest rate

The _______ price for a lately issued bond signifies that the firm issuing the bond is paying the _______ interest rate to borrow the funds. (1) Lower; lower. (2) Lower; higher. (3) Higher; higher. (4) None of the above. The interest rate is fixed.

Find out the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Monetary price and Transaction Costs

    You are more probable to shop at a remote farmer’s market at a lower monetary price instead of purchasing apples at a higher monetary price at the local grocery store if: (i) Possible, as production is cheaper at the farmer’s market. (ii) You want to purch

    		•
  • Q : Change in the price of a resource A

    A change in the price of a resource will cause a modification in the: (w) demand for the resource. (x) supply of the resource. (y) quantity demanded of the resource. (z) demand for the good the resource produces. H

    		•
  • Q : Ratio to determine income elasticity of

    The income elasticity of demand [at a specified price] is computed by the ratio of the relative: (a) change in quantity demanded over a given proportional change in income. (b) reciprocal of the price elasticity of supply. (c) slope of the demand curv

    		•
  • Q : Market period disequilibrium At the

    At the price P1, this purely competitive Christmas tree industry is within: (w) long-run equilibrium. (x) short-run equilibrium. (y) market period disequilibrium. (z) short-run disequilibrium.

    Q : Problem on Vertical Mergers Assume that

    Assume that Ben & Jerry’s Ice Cream purchases a big dairy farm and some sugar cane farms. Ben and Jerry’s Ice Cream is practicing: (i) Vertical integration. (ii) Horizontal integration. (iii) Monopolization. (iv) Industrial concentration. (v) Conglomer

    		•
  • Q : Problem on cost curve The following

    The following diagram illustrates the short-run average total cost curves for five different plant sizes of any firm. The shape of each curve reflects: 1) increasing returns, followed by diminishing returns. 2) economies of scale, followed by diseconomies of scale. 3)

    		•
  • Q : Labor Productivity The American workers

    The American workers tend to be much productive than their counterparts in the South America or Asia in part as they have: (i) Superior natural genetic endowments. (ii) Access to the better sports programming, that promotes the team-work. (iii) More capital to work wi

    		•
  • Q : Illustration of zero Consumer Surpluses

    Clark pays $99.95 for the latest fishing rod. When Clark was willing to pay just a maximum of $99.95 for that fishing rod, his consumer surplus equivalents: (1) zero. (2) Clark would not be willing to buy the fishing rod at $99.95. (3) $99.95. (4) Clark would be bette

    		•
  • Q : Problem on volatility of prices Can

    Can someone help me in finding out the right answer from the given options. In long run, the activities of successful speculators tend to: (i) Decrease the volatility of prices. (ii) Attract legal attention resultant in imprisonment. (iii) Raise the level and volatili

    		•
  • Q : Imperfectly competitive market A firm

    A firm within an imperfectly competitive market is: (w) more likely to advertise than a purely competitive firm. (x) less probable to advertise than a purely competitive firm. (y) neither more nor less probable to advertise than a pure competitor. (z)

    		•