Author Question: Suppose you have two investments to choose from: 1, A one-year 20,000 zero coupon bond 2, A ... (Read 42 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?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

For a complete list of videos, visit our video library