Match the terms with the definitions. Some terms may not be used.

a. agency bond

b. callable bond

c. convertible bond

d. debenture

e. face value

f. general obligation bond

g. municipal bond

h. revenue bond

i. secured bond

j . zero-coupon bond

__ A bond issued by a federal agency

Both newborn infants and aged individuals have very little subcutaneous tissue. How does this affect their sensitivity to cold environmental temperature?

Both newborn infants and aged individuals have very little subcutaneous tissue. How does this affect their sensitivity to cold environmental temperature?

Both newborn infants and aged individuals have very little subcutaneous tissue. How does this affect their sensitivity to cold environmental temperature?

Describe the structure of an antibody, and explain the importance of its variable and constant regions.

Describe the three factors of production.

A new bond you are considering buying has a face value of $1,000, an interest rate of 5 percent, and a maturity date eight years away. The bond is currently selling at 104. What is the current yield? What amount of interest would you earn in that time period?

From one year to the next, inflation rises from 4 to 5 percent, while unemployment rises from 6 to 7 percent. Which of the following events could be responsible for this change? a. The central bank increases the growth rate of the money supply. b. The government cuts spending and raises taxes to reduce the budget deficit. c. Newly discovered oil reserves cause world oil prices to plummet. d. The appointment of a new Fed chairman increases expected inflation.

From one year to the next, inflation falls from $5$ to $4$ percent, while unemployment falls from $7$ to $6$ percent. Which of the following events could be responsible for this change?

a. The central bank increases the growth rate of the money supply.

b. The government cuts spending and raises taxes to reduce the budget deficit.

c. Newly discovered oil reserves cause world oil prices to plummet.

d. The appointment of a new Fed chair increases expected inflation.

Advocates of the theory of rational expectations believe that a. the sacrifice ratio can be much smaller if policy-makers make a credible commitment to low inflation. b. if disinflation catches people by surprise, it will have minimal impact on unemployment. c. wage and price setters never expect the central bank to follow through on its announcements. d. expected inflation depends on the rates of inflation that people have recently observed.

The great 18th-century economist Adam Smith wrote, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.” Explain how each of the three conditions Smith describes would promote economic growth.

It is illegal for firms selling bonds to mislead or defraud investors. Investment firms have an obligation to inform their customers about the risks associated with the bonds. The Financial Industry Regulatory Authority (FINRA) is the largest non-governmental agency that regulates bonds (and stocks). Use the Internet to learn more about FINRA. How does it help enforce federal securities laws and protect investors?

Susanne has $10,000 to invest. She is considering buying investmentgrade corporate bonds because interest rates on bonds are somewhat higher than on CDs. She has rejected stocks because of the risk involved. Susanne feels that interest rates will rise, but in the meantime, she needs a relatively safe place for her money. Explain to Susanne how bond prices are affected by interest rates. Is she making the right decision? Explain.

The wholesaler contracted with Foundry to buy all of the Wholesaler's annual requirements for certain types of valves from Foundry. The contract had no duration term, but the parties performed under it for several years before Wholesaler repudiated their agreement. In Foundry's suit against Wholesaler, Foundry's damages will be:

a) to sell an amount equal to Wholesaler's usual requirements for a year to another buyer, and recover the difference between the contract price and the market price.

b) to sell an amount equal to Wholesaler's usual requirements for a year to another buyer at a discount, because Wholesaler selected specific valves, and recover the difference between the contract price and the market price.

c) lost volume profits based on Wholesaler's usual requirements for a year from the canceled contract because Foundry is a lost volume seller.

d) not lost volume profits based on Wholesaler's usual requirements for a year from the canceled contract, because Foundry is not a lost volume seller.