15. If the principal amount of a bond is $2,000,000, the coupon rate is 6 percent , and the inflation rate is 4 percent, then the annual coupon payment made to the holder of the bond is: (A) $12,000. (B) $40,000. (C) $80,000. (D) $120,000.

2. Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true? (A) Joe and Mary can make a mutually beneficial exchange. (B) Joe and Mary cannot make a mutually beneficial exchange. (C) Joe and Mary will not trade in equilibrium. (D) Joe and Mary will only trade if the equilibrium price is less than $1.

15. If the principal amount of a bond is $2,000,000, the coupon rate is 6 percent , and the inflation rate is 4 percent, then the annual coupon payment made to the holder of the bond is:
(A) $12,000.
(B) $40,000.
(C) $80,000.
(D) $120,000.

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