Author Question: Suppose you have two investments to choose from: 1, A one-year 20,000 zero coupon bond 2, A ... (Read 51 times)

go.lag

  • Hero Member
  • *****
  • Posts: 667
Suppose you have two investments to choose from:
 
  1, A one-year 20,000 zero coupon bond
   2, A two-year 20,000 zero coupon bond
  What is the difference between the prices of these bonds if the interest rate rises from 4 to 5?
  A) You would lose 167.39 more on the two year bond.
  B) You would lose 167.39 more on the one year bond.
  C) You would gain 350.54 more on the two year bond.
  D) You would lose 183.15 more on the one year bond.

Question 2

The aggregate production function is bowed or concave because
 
  A) of the diminishing marginal returns of labor.
  B) restriction in capital mobility.
  C) of the speed of payment systems.
  D) the learning curve for labor.



jaygar71

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

For a complete list of videos, visit our video library