Unformatted text preview: e 4) _______ country in which it is sold are known as A) equity bonds. B) foreign bonds. C) Eurobonds. D) country bonds. 5) The conversion of a barter economy to one that uses money 5) _______ A) increases efficiency by reducing the need to exchange goods and services. B) increases efficiency by reducing transactions costs. C) does not increase economic efficiency. D) increases efficiency by reducing the need to specialize. 6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest 6) _______ rate is A) 15 percent. B) 12.5 percent. C) 10 percent. D) 5 percent. 7) A credit market instrument that pays the owner a fixed coupon payment every year until the 7) _______ maturity date and then repays the face value is called a A) fixed-payment loan. B) coupon bond. C) simple loan. D) discount bond. 8) A discount bond 8) _______ A) pays the bondholder the face value at maturity. B) pays the face value at maturity plus any capital gain. C) pays all interest and the face value at maturity. D) pays th...
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This document was uploaded on 03/20/2014 for the course ECO ECO349 at University of Toronto.
- Winter '14