Which of the following is NOT TRUE about bond valuation? * a. Bonds can sell either for a discount or premium. b. The value of the bond does not necessarily equal or the same as its price. c. Bonds pays its cash flows through periodic interest payments and principal. d. None of the choices.
Q: Let us denote John's daily hours of work by H, and his hours of leisure by N = 24 - H. Suppose that ...
A: a) Wage rate = $30 This is the opportunity cost of not working. which means if Johns chooses not t...
Q: Consider golfers who led the Professional Golfers'A ssociation of A merica (P GA ) in winnings at di...
A: Winnings in 2016 dollars show winnings adjusted for inflation
Q: Is Social Security expected to be around when you retire? Write a paragraph of at least 100 words ex...
A: Social security is defined as a federal program under which retirement benefits are provided to the ...
Q: Where does the Central Bank's profit go?
A: Central Bank of an economy cab earn profit in terms of interest income as it provides loan to the co...
Q: A demand function is given by: q = 3y+2y? -6p² - 5p-4 4. y>0 where q is quantity demanded, p is pric...
A: Answer:
Q: please draw a graph showing the Aggregate Demand curve and Aggregate Supply curve and then show how ...
A: The demand and supply of all products and services produced by an economy are the emphasis. As a res...
Q: .what is the history of transportation? ( year - what was the way they transport )
A: Transportation plays an important role in the economy. As the growth occurred in transportation, it ...
Q: 39. The ________ states that exchange rates between any two currencies will adjust to reflect chang...
A: The exchange rate is defined as the rate at which one country's currency is exchanged for another co...
Q: The most common definition that monetary policymakers use for price stability is Question 15 optio...
A: Inflation rate is the increase in average price level of goods and services produced in the economy.
Q: A first year student estimated a linear consumption function and found out that Ct = 200 +...
A: Income refers to the source of livelihood which gives the incentive to workers. It means the people ...
Q: Each consumer has the following demand for annual visits to Planet Fitness: Q = 100 - P, where Q is ...
A: A single seller is called the Monopoly, price discrimination is the main nature of it. A two-part ta...
Q: Scenario: Alex, an entrepreneur, operates a called business "Fitness for Life", providing physical c...
A: According to the question given, Alex is an entrepreneur who owns a business called "Fitness for Li...
Q: You borrow $100 from one friend. You sell another friend an old cell phone case for $30. You give a ...
A: As given $100 borrow from one friend and $30 recieve after selling an old cell phone case and $80 gi...
Q: 1. In answering the question, you should emphasize the line of reasoning that generated your results...
A:
Q: la. What are the determinants that shift the demand curve, define and list 4 conditions. 1b. What ar...
A: 1.a). There are some determinants that can shift the demand curve are mentioned below: 1). Change in...
Q: a) State on thing that would cause market supply to increase (cause the suppl to shift to the re (...
A: The curve that depicts various quantities of goods and services being supplied at different levels o...
Q: Which of the following is a way to compute GDP?
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: Employment protection laws do NOT: a. decrease the duration of unemployment. b. increase the unemplo...
A: Discrimination against eligible individuals with disabilities is illegal under employment protection...
Q: Which one of the following statements is true in regards to who owns the Feds district banks? O A. T...
A: The composers of the Federal Reserve Act intentionally dismissed the idea of a single central bank. ...
Q: A player's strategy is called free riding when A)The player cannot do better than to cooperate full...
A: Free riding tends to prevent the consumption and production of services and goods through the conven...
Q: MAC = 94 - 0.04E %3D MD = 0.01E The government sets an emission standard at E = 2000. %3D The probab...
A: Marginal Damage (MD) is defined as the hard caused by the additional units of pollution emitted into...
Q: How is the problem of what and how much to produce resolved in the capitalist system?
A: A capitalist system is an economic system where private enterprises own and control the resources of...
Q: rican cities in the early 2000s, and that Medicare enrollees in high-spending cities were a lot h ul...
A: Health care spending is consuming an undeniably bigger extent of GDP consistently, yet there is litt...
Q: Callum borrowed $45,200 from a bank at an interest rate of 9% compounded monthly. This loan is to be...
A: Principal=$45,200i=9% (compunded monthly)Number of installment=16Period=8 yearsInstallment paid=semi...
Q: -Question Completion Status: Market for Herring 15 So 8 Sworld + tariff Sworld Do 250 750 1670 3000 ...
A: A country becomes an importer when world price is less than domestic equilibrium price because quant...
Q: The following graph shows the domestic supply of and demand for maize in Guatemala. The world price ...
A: When world price is less than equilibrium price, quantity demanded exceeds quantity supplied and the...
Q: When the economy is in a recessionary mode, what will likely be the actions by government using fisc...
A: Recession is such an economic phenomenon where there is fall in economic activity. In such circumsta...
Q: The demand functions for each of two goods depend on the prices of the goods, p1 and p2: qD1=15-3p1+...
A: Demand: Q₁= 15-3P₁ +P₂ Demand: Q₂ = 6-2P₂ +P₁ Supply : Q₁ = 2 +P₁ Q₂ = 1 + ...
Q: Mavis earns income in two periods, M1 and M2 and buys consumption goods in twd periods as well, C, a...
A: Given information U=u(C1)+u(C2)1+δ Utility is well behaved function lets take 11+δ=β Utility functio...
Q: Explain how (if at all) each of the following events affects the location of a country's production ...
A: Unemployment is characterized as a circumstance where an individual of working age can't find a new ...
Q: The input-Output coefficent matrix for 2-sector economy is given by: 03 03 A = 0.4 0.6 The final dem...
A:
Q: Explain why many economists argue against the existence of monopolies in the market, and evaluate go...
A: According to general equilibrium economics, a free market is the most efficient way to distribute go...
Q: Given the demand and supply functions, determine consumer's surplus under perfect competition: Pa = ...
A: "Consumer surplus indicates the difference between the maximum price which a consumer is willing to ...
Q: An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two c...
A: The optimal price is the one that maximises the seller's overall profit. When a price is set too low...
Q: In this version of the ultimatum game experiment, one participant is given £100, and is told to offe...
A: Option B is the correct answer
Q: Suppose the workers on a farm are equally productive but they may decide not to work as hard because...
A: Adverse selection: When there is asymmetric information between two parties, and the party with the ...
Q: Suppose we alocate a foxed supply of a depletable resource between two periods in a dynamically effi...
A: The demand function shows the inverse relationship between two variables that are price and quantity...
Q: Break even analysis utilizes both current and projected figures. In a rapidly changing economy, ther...
A: To anticipate demand and manage inventory, distribution companies generally use prior sales data and...
Q: Consider the following data for an economy last year: Total population 383.52 million Part-time work...
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: Suppose a particular stretch of river can be used to build a hydropower dam that generates 2983 Kilo...
A: Opportunity cost is the forgone benefits from the next best alternative.
Q: instructor wants to create a test that has true-false questions, multiple-choice questions, and essa...
A: Both 1st and 2nd part solved below,
Q: The supply and demand curves for a product are given by the following equations: P = aQs + b and P =...
A: Given information Given information Demand function P=cQd+d Supply function P=aQs+b new demand funct...
Q: The exchange rate is Question 18 options: a) the value of a currency relative to inflation. b...
A: Exchange rate affects the price of money but has no effect on money supply.
Q: What's the primary role of politics and governance as a driver of Globalization?
A: Globalisation:- The term "globalisation" alludes towards how business and innovation has created the...
Q: What would be the rational for Product customisation impact on revenue and profitability
A: People expect companies to personalize their products and services to their individual needs in the ...
Q: State whether each item below would be included or excluded from the me explain why. OT GDP and expl...
A: The gross domestic product (GDP) is the aggregate value of goods and services produced in the domest...
Q: > Consider this total product function with a single variable input, labor (L) per day: TPL = Q(L) =...
A: Total Product refers to the sum of all the products whether goods or services that are produced by a...
Q: When a country's goods and services are expensive relative to other countries', we say that its curr...
A:
Q: The Laspeyres index is the ratio of the price of goods at prices to the price of goods at prices. O ...
A: Laspeyres index refers to the price index of Fixed quantity of goods and services
Q: The following relations describe monthly demand and supply for a wheat Qp = 32 - 4 Qs = ÷P- 16 where...
A: (a) A perfectly competitive market produces at the intersection point of market demand and market su...
Which of the following is NOT TRUE about bond valuation? *
a. Bonds can sell either for a discount or premium.
b. The value of the bond does not necessarily equal or the same as its
c. Bonds pays its cash flows through periodic interest payments and principal.
d. None of the choices.
Step by step
Solved in 2 steps
- Which of the following is TRUE about bonds? *a. If the bond price is greater than its par value, the bond is discounted.b. None of the choices.c. If the bond price is greater than its par value, the bond is traded at a premium.d. Coupon rates are always higher than the market rate.Which of the following is NOT TRUE about bond valuation? *a. Bonds can sell either for a discount or premium.b. The value of the bond does not necessarily equal or the same as its price.c. Bonds pays its cash flows through periodic interest payments and principal.d. None of the choices.e. Bond valuation is used to calculate the worth of the bond compared to its priceWhich of the following would both make the interest rate on a bond higher than otherwise? a. the interest it pays is tax exempt and it is short term b. the interest it pays is tax exempt and it is long term c. the interest it pays is taxed and it is long term d. the interest it pays is taxed and it is short term
- Consider that you were given a US savings bond that will pay $100 when it matures in ten years. What happens if the interest rate rises to the present value of this bond payment?Why happens if the interest rate rises to the present value of this bond payment? A. Increases in present value B. The current value is unaffected. C. A decrease in present valueWhich of the following is TRUE for a coupon bond? Select one: a. The yield to maturity is greater than the coupon rate when the bond price is above the par value. b. The price of a coupon bond and the yield to maturity are positively related. c. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate d. The yield is less than the coupon rate when the bond price is below the par valueStock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates a. fall in reaction to the decreased demand for bonds. b. rise in reaction to the increased demand for bonds. c. fall in reaction to the increased demand for bonds. d. rise in reaction to the decreased demand for bonds.
- A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a: Select one: a. simple loan b. fixed-payment loan. c. Coupon bond. d. Discount bondSuppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases? A. Present value increases B. Present value is not affected C. Present value declinesWhich of the following refers to the interest payments of the bond? *A. Coupon BondB. Present ValueC. Coupon RateD. Discount Rate
- Which of the following statements is correct regarding bonds? A. An increase in market interest rate would reduce a bond's yield. B. Bonds with high yields reflect high risk instruments. C. The equilibrium market price of a bond is always greater than the present value of that bond. D. A decrease in the market interest rate would result in a decrease in the present value of the bond. dont use chatgpt answerBond A pays $8,000 in 20 years. Bond B pays $8,000 in 40 years. (To keep things simple, assume these are zero-coupon bonds, which means the $8,000 is the only payment the bondholder receives.) a. If the interest rate is 3.5 percent, what is the value of each bond today? Which bond is worth more? Why? (Hint: You can use a calculator, but the rule of 70 should make the calculation easy.) b. If the interest rate increases to 7 percent, what is the value of each bond? Which bond has a larger percentage change in value? c. Based on the example above, complete the two blanks in this sentence: "The value of a bond [rises/falls] when the interest rate increases, and bonds with a longer time to maturity are [more/less] sensitive to changes in the interest rate.Question 4. Working with Numbers and Graphs Q4 The face value of a bond is $6,000, and the annual coupon payment is $180. The coupon rate is_