Answer:
b. −1.79 percent
Explanation:
You can solve this using a financial calculator. I'm using TI BA II plus ;
First, find Price of the bond if YTM = 5.5%. Since it is semi-annual, adjust the YTM and total duration;
N = 13*2 = 26
I/Y = 5.5%/2 = 2.75%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1046.01
Next, find Price of the bond if YTM = 5.7%.
N = 13*2 = 26
I/Y = 5.7%/2 = 2.85%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1027.28
Percentage change =[ (New price- Old price)/Old price] *100
= -1.79%
Answer:
B. Being unwilling to sell a painting that you already own
Explanation:
Endowment effect is when individuals value things they own more highly than things they don't own. The endowment effect postulates that individuals are unwilling to exchange things they own for something else of equal value.
The amount people would be willing to accept in exchange for the good they own is usually very high compared to the true value of the object they own.
I hope my answer helps you.
Answer:
The price of Android tablets will increase.
The demand for Android tablets will increase.
Explanation:
iPads and android Tablets are direct competition for one another.
So, when the average prices of an ipad goes up , some percentage of the <u><em>consumers will seek alternatives for similar product.</em></u> This is why the demand for android tablets will increase.
But, there is one more point to consider.
Online retailer tend to sell different brands of a similar product to its consumers. It is very likely that big retailers will sell both apple and andorid products in their store.
<u><em>if the price of Ipad goes up because of the change in the retailer's sale policies, that change will definitely affect the price of the android as well</em></u>
Because of this, The price of Android tablets will also increase. Even though the increase may not be as high as Ipad since they have lower baseline price/
Answer:
Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. Thus, lessening utility bills will reduce.
Explanation:
