According to my opinion, what the agent did wrong is that he asked him to write the answers of the questions two more times because when we write again and again the same thing our handwriting changes.And what the agent did right is that he influenced him to compose all that he says as he directs the data to the suspect because in this way they can see whether the handwriting matches it or not.
Answer:
A) the formula to calculate modified duration of bonds:
modified duration = [1 - (1 + y)⁻ⁿ] / y
modified duration = [1 - (1 + 6%)⁻³] / 6% = 2.673 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 2.673 years x 1.06 = 2.833 years
B)
modified duration = [1 - (1 + 10%)⁻³] / 10% = 2.487 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 2.487 years x 1.1 = 2.736 years
Answer:
PED = 5.49
Explanation:
current price = $0.99 per ticket
average daily tickets sold = 433
average daily revenue = $428.67
if the company increases the price to $1.10, then average daily tickets will be only 169. Average daily revenue will drop to $185.90
price elasticity of demand (PED) = % change in quantity demanded / % change in price
PED = [(169 - 433)/433] / [(1.1 - 0.99)/0.99] = -0.6097 / 0.1111 = -5.49 or |5.49| in absolute terms
the price of tickets is very elastic, meaning that a 1% change in price will result in a much higher proportional change in quantity demanded
Answer:
b. can be described either in terms of the money supply or in terms of the interest rate.
Explanation:
Monetary policies are all policies enacted by the Central bank to control money supply and interest rate in order to achieve certain macroeconomic objectives.
Monetary policy can be expansionary or contractionary.
Expansionary monetary policy is carried out when the objective is to stimulate economic activities. They include open market purchase and lowering interest rates.
Contractionary monetary policy is carried out when the objective to reduce money supply. The Central bank can increase interest and rate and carry out an open market sale.
I hope my answer helps you
