Answer:
Zero-cupon bond= $73.33
Explanation:
Giving the following information:
You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1% and the face value is $1,000.
<u>To calculate the price of the bond, we need to use the following formula:</u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.091^30)]
Zero-cupon bond= $73.33
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Answer:
Real wage rate can be calculated by:
= Nominal wage rate /CPI * 100
2018 real wage rate:
= 7 / 252 * 100
= $2.78
2019 real wage rate:
= 10 / 257 * 100
= $3.89
Did these workers really get a pay raise between 2018 and 2019?
YES THEY DID:
= 2019 real wage - 2018 wage rate
= 3.89 - 2.78
= $1.11
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Answer:
There exists a positive relationship between the price and quantity supplied and thus a supply curve is upward sloping
Explanation:
All things being equal, when the price of a good increases, the quantity supplied increases as there would be more suppliers in the market or existing suppliers would be willing to do more. The same is also the case if the price falls, supply would fall
When we plot a graph with price and quantity, we noticed that it slopes upwards as quantity increases as prices does
