Author Question: Suppose you have two investments to choose from: 1, A one-year 20,000 zero coupon bond 2, A ... (Read 46 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?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

For a complete list of videos, visit our video library