Answer:
3.76 years
Explanation:
Given:
Let face value of bond be $1,000
Coupon rate = 10% or 0.1
Coupon payment (pmt) = $100
YTM (rate) = 9.5%
Current price of the bond is computed by dividing coupon payment by current yield.
Current yield = 9.85% or 0.0985
PV of bond = 100 / 0.0985 = $1,015.23
Compute years to maturity using spreadsheet function nper(rate,pmt,PV,FV)
Years to maturity is 3.76 years.
Answer:
(B) U(c,f)=min{2c,f}
Explanation:
This is an example of Leontif utility function which states that the preferences of a consumer is to a constant ratio of quantities of two or more goods in his demand bundles and having an extra unit of a single good will not increase the utility of the consumer and will make the extra unit to waste. But having more units of all the goods in the demand bundle which maintain the constant ratio will increase the utility of the consumer.
A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.
In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.
Therefore, option (B) U(c,f)=min{2c,f} is the correct answer that gives a constant ratio of 2:1 = 2c:f.
I wish you the best.
The income elasticity of demand is 1 which shows that if the prices are lowered the demand will increase. The quantity demanded will change as the price changes.
<h3>What is demand?</h3>
Demand is the want of a product this is influenced by the price and supply of the product. If the price of a product is increased the demand for the product will fall and if the price is lowered the demand will increase.
The demand is increased if prices are lowered and vice versa when the income elasticity of demand is positive which is the case for health care.
Learn more about Elasticity of Demand at brainly.com/question/27300772
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Answer:
d. decrease, increase
Explanation:
A simultaneous increase in supply and decrease in demand for HD tvs would lead to an excess of supply of demand and equilibrium quantity would increase and equilibrium price would fall.
An increase in supply for HD tvs would shift the supply curve to the right . A decrease in the demand for HD tvs would shift the demand curve to the left.
Check the attached image for a graph showing the effect of a simultaneous increase in supply and decrease in demand for HD tvs on equilibrium price and quantity.
I hope my answer helps you.