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19. The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year is I A) - 10

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19. The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year is I A) - 10 percent B) - 5 percent. C) O percent D) 5 percent 20. If the nominal rate of interest is 2 percent, and the expected inflation rate it.6 percent, the real rate of interest is A) 2 percent B) 8 percent C) 10 percent D) 12 percent 21. If housing prices are expected to decrease, then, other things equal, the demand for houses and that of Treasury bills will A) increase; increase B) increase, decrease C) decrease; decrease D) decrease increase 22. When the interest rate on a bond is the equilibrium interest rate, in the bond market there is excess and the interest rate will A) below, demand; rise B) above; demand; fall C) below, supply, fall D) above, supply, rise

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