Price of a Long-Term Bond, When the interest rate falls, in that case the price of a

Price of a Long-Term Bond

When the interest rate falls, in that case the price of a long-term bond: (w) falls faster than a perpetuity bond. (x) rises. (y) does not change. (z) falls relatively less than a short term bond.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

View Complete Question

Related Questions in Microeconomics

Q : Problem on Substitution effect for good

One of my friend has a problem on substitution effect. The original equilibrium point (that is utility-maximizing bundle) in the graph shown below is at point A. The price of good Y is increased, pivoting the budget constraint down to its latest level.a. F

Q : Measurement of arc price elasticity

Measures of arc price elasticity tend to be more accurate and precise than measures of point price elasticity since: (w) arc elasticity is more sensitive to the dependent variable. (x) point elasticity is additionally sensitive to the independent vari

Q : Relative magnitudes of income effects

The firm’s wage elasticity of demand for the labor is least influenced by: (1) How much time the firm have to adjust to modifying wages. (2) The proportion of labor’s share of net costs. (3) The ease of replacement between labor and capita

Q : Problem on Market Power and Demand for

Can someone help me in finding out the right answer from the given options. Imperfect competition in the product markets outcomes in: (i) Less labor hired than when product markets were competitive. (ii) Above the equilibrium wages being paid by the monopolists. (iii)

Q : Price increment for higher total revenue

A price increase for Pixie’s cheesy fried grits by P1 to P2 would yield higher total as: (w) revenue because demand is price elastic. (x) supply since demand is unitarily elastic. (y) revenue since demand is price inelastic. (z) use of the

Q : Define Optimal Sample Size Optimal

Optimal Sample Size: The optimal or suitable size of sample in a survey or poll is the function of four discrete factors: 1. Size of the population: The size of the

Q : Higher interest rate in funds A higher

A higher interest rate is probably to be a consequence of: (1) lower expected profitability to investors. (2) new tax breaks onto interest income. (3) weakening preferences for current income over future income. (4) increased preferences for recent co

Discover Q & A

Leading Solution Library

Avail More Than 1412018 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1948485
Asked

3,689

Active Tutors

1412018

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment