Need help with multiple choice macroeconomic question 9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250.Because of expected economic growth, the inital bondholder sells it for $12,500. Whatis the bond's new yield?(A) 25 percent.(В) 2.5 рercent.(C) 2 percent.(D) 20 рercent. 8. Consider a fractional-reserve banking system in which an initial deposit of $1,000 cangenerate up to $1,000,000 in money. What is the reserve ratio?(A) 10 percent.(В) 5 percent.(C) 1 percent.(D) 0.1 percent.

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9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250. Because of expected economic growth, the inital bondholder sells it for $12,500. What is the bond's new yield? (A) 25 percent. (B) 2.5 percent. (C) 2 percent. (D) 20 percent.

9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250. Because of expected economic growth, the inital bondholder sells it for $12,500. What is the bond's new yield? (A) 25 percent. (B) 2.5 percent. (C) 2 percent. (D) 20 percent.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 4CQQ

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Question

Need help with multiple choice macroeconomic question

9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250.
Because of expected economic growth, the inital bondholder sells it for $12,500. What
is the bond's new yield?
(A) 25 percent.
(В) 2.5 рercent.
(C) 2 percent.
(D) 20 рercent.

8. Consider a fractional-reserve banking system in which an initial deposit of $1,000 can
generate up to $1,000,000 in money. What is the reserve ratio?
(A) 10 percent.
(В) 5 percent.
(C) 1 percent.
(D) 0.1 percent.

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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