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AP® Macroeconomics

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Calculating Interest: Bond Pays 5% APR

APMACR-YG1EDW

If a one year, a \$1000 bond pays 5% APR then which of the following is true?

I. The bond will pay \$50 at maturity.

II. Maturity occurs after one year.

III. Deficit spending has occurred.

A

I only

B

I and II

C

I and III

D

II and III

E

I, II and III