Answer: 9.04%
Explanation:
1 year rate today = 5% = 0.05
2 years rate today = 7% = 0.07
Maturity of longer bond = 2
The ending return if the 2 years bond are bought will be thesame as the needed return on series of a year bond which will be 1.1449
The market's forecast for 1-year rates 1 year from now will be calculated as:
= 1.05(1+X) = 1.1449
1.05 + 1.05X = 1.1449
1.05X = 1.1449 - 1.05
1.05X = 0.0949
X = 0.0949/1.05
X = 0.090381
X = 9.04%
What are the answer choices?
Considering the functions and operations of the organizations, The NYSE is an example of a(n) <u>Organized</u> exchange while NASDAQ is an example of a(an) <u>Over the Counter</u> market.
NYSE is an acronym for the <u>New York Stock Exchange.</u> It is generally considered the most significant capital market in the world, with over $30 trillion. Its stock market is deemed to be stable. It is also known as a designated market.
On the other hand, NASDAQ is an acronym for National Association of Securities Dealers Automated Quotations. However, its stock market is considered to be volatile. It is also a dealer market
Hence, in this case, it is concluded that the correct answer is option A. "<u>Organized; over-the-counter."</u>
Learn more here: brainly.com/question/21993468
Answer:
c. percentage change in price and percentage change in quantity demanded.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
The price-elasticity of demand coefficient, Ed, is measured in terms of percentage change in price and percentage change in quantity demanded.
The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.