Consider the following scenario when answering the next five questions Your friend Kevin is starting a cider brewery in Colorado Springs. Because his business is new and risky, he is unable to obtain a loan from the local bank. You agree to pay a price of $20.000 for a bond from Kevin. You will receive $22,000 in repayment exactly one year from now. The dollar price of the bond mentioned in the scenario is equal to O $22,000 O $42.000 O $2,000 $20,000
Consider the following scenario when answering the next five questions Your friend Kevin is starting a cider brewery in Colorado Springs. Because his business is new and risky, he is unable to obtain a loan from the local bank. You agree to pay a price of $20.000 for a bond from Kevin. You will receive $22,000 in repayment exactly one year from now. The dollar price of the bond mentioned in the scenario is equal to O $22,000 O $42.000 O $2,000 $20,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Consider the following scenario when answering the next five questions.
Your friend Kevin is starting a cider brewery in Colorado Springs. Because his business is new and risky, he
is unable to obtain a loan from the local bank. You agree to pay a price of $20,000 for a bond from Kevin.
You will receive $22,000 in repayment exactly one year from now.
The dollar price of the bond mentioned in the scenario is equal to
O $22,000
O $42,000
O $2,000
$20,000
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