Answer:
False, supply is not derived from a producer's desire to minimize profits.
Explanation:
Producers do not desire to minimize profits through supply, rather the desire to maximize profits through demands.
Answer: 100.74
Explanation:
Face value= $100
Coupon payment = $100 × 1% = $100 × 1/100 = $100 × 0.1 = $1
Interest rate = 0.75% = 0.75/100 = 0.0075
The price of the bond will be:
= 1/(1 + 0.0075) + 1/(1 + 0.0075)^2 + 1/(1 + 0.0075)^3
= 100.74
Answer:
Solution is given in tabular form for better interpretation and understanding of the problem and its solution.