Put the goods in the correct category, indicating whether the demand for them is elastic or inelastic. Think about each good in
terms of the typical person's quantity demanded.
1. Tropicana orange juice
2. Cocoa Pebbles cereal
3. blood pressure and diabetes medication
4. cigarettes if you smoke 3 packs a day
5. public water and other utilities
6. restaurant drive-through at 3 am
7. fast food in the food court at the mall
1. Tropicana orange juice
2. Cocoa Pebbles cereal
3. blood pressure and diabetes medication
4. cigarettes if you smoke 3 packs a day
5. public water and other utilities
6. restaurant drive-through at 3 am
7. fast food in the food court at the mall
1 answer:
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Answer:
if YTM at 4% price : $2,902.1237
if YTM at 8% price : $1,788.0448
The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value
Explanation:
the market price of the bond will be the present value of coupo payment and maturity:
C 150.000
time 30
rate 0.04
PV $2,593.8050
Maturity 1,000.00
time 30.00
rate 0.04
PV 308.32
PV c $2,593.8050
PV m $308.3187
Total $2,902.1237
No we repeat the process with the yield at 8%
C 150.000
time 30
rate 0.08
PV $1,688.6675
Maturity 1,000.00
time 30.00
rate 0.08
PV 99.38
PV c $1,688.6675
PV m $99.3773
Total $1,788.0448