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Author Question: What is the approximate price of a 10,000 coupon bond that pays 1,000 in one year and 1,000 in two ... (Read 10 times)

bclement10

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on: Jul 1, 2018
What is the approximate price of a 10,000 coupon bond that pays 1,000 in one year and 1,000 in two years at maturity? The effective yield on the bond is 6 percent.
 
  A) 10,000
  B) 10,730
  C) 10,900
  D) 12,000

Question 2

Suppose a plant manager ignores some implicit marginal costs of production so that the perceived MC curve is below the actual MC curve. What is the likely outcome from this error?
 
  A) Firm produces less than optimal quantity and earns lower profits
  B) Firm produces less than optimal quantity and earns higher profits
  C) Firm produces more than optimal quantity and earns lower profits
  D) Firm produces more than optimal quantity and earns higher profits


missalyssa26

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


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