Answer:
$2,189.76 
Explanation:
<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>
<em>The price of the bond can be calculated as follows:</em>
<em>Step 1</em>
<em>PV of interest payment</em>
Interest payment =( 5.94%× $2000)/2
= $59.4
Semi annual yield = 5.1/2 = 2.6%
PV of interest payment 
= 59.4× (1-(1.026)^(-20×2))/0.026)
= 59.4 × 24.41400537
=<em>$ 1,450.19</em>
Step 2 
<em>PV of  redemption value</em> 
=  2,000 × (1+0.051)^(-20)
= 2,000 × 0.369781925
=   739.56 
 
Step 3
<em>Price of bond  </em>
= $1,450.19 + $739.56  
=$2,189.76 
 
        
             
        
        
        
Answer:
0.2571 or 25.71%
Explanation:
In this case, even though the initial amount invested is not given, it can be found by subtracting the amount by which the investment appreciated of the year-end value:

The return rate is given by the interest payed added to the amount appreciated, divided by the initial investment:

The customer's total return is 0.2571 or 25.71%
 
        
             
        
        
        
Answer:
Option (b) is correct.
Explanation:
This is a case of monopoly market condition where there is a single firm operating the whole market. The price of the products is set by the single firm and the buyers in this market are price taker. The monopolist can earn normal profit, losses and abnormal profit in the short run and can earn normal profit and abnormal profit in the long run. 
In our case, the price of diamonds is high because there is only single firm in the whole market and there is no other competitors in the market. That's why they are charging the higher prices.