6. You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long term and you know that Bluestone's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct? a. The longer term would tend to make the interest rate on the bond issued by Bluestone higher, while the higher risk would tend to make the interest rate lower. b. The longer term would tend to make the interest rate on the bond issued by Bluestone lower, while the higher risk would tend to make the interest rate higher. c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Bluestone. d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Bluestone.
6. You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long term and you know that Bluestone's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct? a. The longer term would tend to make the interest rate on the bond issued by Bluestone higher, while the higher risk would tend to make the interest rate lower. b. The longer term would tend to make the interest rate on the bond issued by Bluestone lower, while the higher risk would tend to make the interest rate higher. c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Bluestone. d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Bluestone.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:6. You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long term and you know
that Bluestone's business ventures are risky and uncertain, You then consider another bond with a shorter term to maturity
issued by a company with good prospects and an established reputation. Which of the following is correct?
a. The longer term would tend to make the interest rate on the bond issued by Bluestone higher, while the higher
risk would tend to make the interest rate lower.
b. The longer term would tend to make the interest rate on the bond issued by Bluestone lower, while the higher
risk would tend to make the interest rate higher.
c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by
Bluestone.
d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by
Bluestone.
7. The unemployment rate is computed as the number of unemployed
a. divided by the labor force, all times 100.
b. divided by the number of employed, all times 100.
c. divided by the adult population, all times 100.
d. times the labor-force participation rate, all times 100.
8. Who of the following is not included in the Bureau of Labor Statistics' "employed" category?
a. Those who worked in their own business
b. Those who worked as unpaid workers in a family member's business
c. Those waiting to be recalled to a job from which they had been laid off
d. Those who were temporarily absent from work because of vacation
9. Suppose that the adult population in the country of Atlantis is 130 million. If 100 million people are employed and 7
million are unemployed, then
a. 23 million are not in the labor force.
b. 23 million are in the labor force.
c. 123 million are in the labor force.
d. 93 million are not in the labor force.
10. Minimum wages create unemployment in markets where they create a
a. shortage of labor. Unemployment of this type is called frictional.
b. shortage of labor. Unemployment of this type is called structural.
c. surplus of labor. Unemployment of this type is called frictional.
d. surplus of labor. Unemployment of this type is called structural.
11. Which of the following best represents fiat money?
a. The euro
b. A gold bar
c. Monopoly money
d. Baseball cards
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