Answer:
Politics is the set of activities that are associated with making decisions in groups, or other forms of power relations between individuals, such as the distribution of resources or status.
When a positive externality exists the socially optimal level of output will be greater than that resulting from a private market.
The output level that takes into account all of the benefits and drawbacks of a transaction, or the equilibrium that would be reached if the results of the market took into account the impact of externalities.
"The ideal distribution of resources in society, taking into consideration all external costs and benefits as well as internal costs and advantages," is how economists define a "socially optimal solution."
The distribution that a charitable social planner chooses, limited solely by the endowment of resources, is the social optimum. In general, the social optimum will not be possible if the social planner's policy tools are constrained.
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Answer:
$ 975.93
Explanation:
The market value of the bond can be computed using the pv formula in excel as follows:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield to maturity i.e 6.94%/2=3.47%
nper is the number of semiannual coupon payments the bondholders would receive ,which is 7*2=14
pmt is the semiannual coupon payment=$1000*6.5%*6/12=$32.5
fv is the face value at $1000
=-pv(3.47%,14,32.5,1000)
=$ 975.93
The price of the bond is $ 975.93 which means that it would be issued at a discount of $ 24.07 when compared to face value of $1000
Answer: 4.97%
Explanation:
Yield = (Face value / Purchase price - 1) * 365 days / Days to maturity
= (10,000 / 9,800 - 1) * 365 / 150
= 0.0204081632653 * 365/150
= 4.97%
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