Answer: Please refer to Explanation
Explanation:
The Dominant Strategy in a game is the strategy that a player will choose that will provide them with the highest payoff regardless of what the other player does.
In the above, the dominant strategy will be for RAPHAEL to choose LEFT.
By choosing left Raphael makes a payoff of 4 if Susan picks Left as well and a Payoff of 6 if Sudan picks Right. This is better than him picking Right and he will get a Payoff of 3 if Susan chooses Right as well.
The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.
The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.
This is because Raphael will pick Left as it maximises their payoff and Susan will then pick a strategy that gives her the highest payoff based on Raphael's decision which is to go RIGHT.
Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
When a country can produce a product more cheaply than its trading partners, it is known as: <span>comparative advantage
For example, United States often imported exotic fruits from Brazil. Since Brazil is a tropical country, the cost in producing exotic fruits will be significantly lower compared to growing it in the United States. Therefore, we can say that brazil has a comparative advantage in this product compared to united states.</span>
They make laws to regulate the economy. Hope this helps :)
