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Author Question: Suppose you have two investments to choose from: 1, A one-year 20,000 zero coupon bond 2, A ... (Read 15 times)

go.lag

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  • Posts: 667
on: Jun 30, 2018
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
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  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


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