Answer:
The bond is worth $2,968 today
Explanation:
In order to know "how much is the bond worth today", we need to calculate the present value (PV) of the bond.
Google bond will pay $4,500 ten years from now, it means the future value (FV) is $4,500
Tenor is 10 years
Discounting rate is 4.25% pa
PV = FV/((1+ rate)^ tenor)= $4,500/(1+4.25%)^10 = $2,968
I think the correct answer from the choices listed above is option B. A persuasive title for a proposal that aims to persuade a business to hire a lawn care service would be "<span>How Professional Lawn Care Can Save You Money</span>". It would draw attention to the one you are presenting it. Hope this answers the question. Have a nice day.
Answer:
(d) All of the above responses are correct
Explanation:
The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.
Beta refers to sensitivity of return from stock with respect to the market return.
Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.
ER = Rf + β (Rm- Rf)
ER= Expected Rate Of Return
Rf= Risk Free Rate of Return
Rm= Return from market
β = sensitivity index of security return to market return
Security Market Line (SML) is a graphic representation of CAPM.
Thus, (d) is the correct option
Answer:
A vacation house in Colorado is rival in consumption and excludable.
The correct answer is C
Explanation:
A vacation house in Colorado is rival in consumption and excludable because it is a private good.
Answer:
Inelastic
Explanation:
Elasticity of demand = percentage change in quantity demanded / percentage change in price
percentage change in quantity demanded =
35,000 - 40,000/40,000 = -0.125 = -12.5%
percentage change in price = $10 - $8 / $8 = 0.25 = 25%
Elasticity = -12.5%/25%= -0.5
Demand is inelastic because the elasticity of demand is a less than 1.
Elasticity of demand measures how quantity demanded changes when price change.
Demand is inelastic when a change in price has no effect on quantity demanded. Inelastic demand has a value of less than 1 .
Demand is elastic if a change in price has an effect on quantity demanded. Elastic demand has a value of more 1
Unitary elastic is when a change in price has the same proportional effect on a change in quantity demanded. Unitary elastic demand has a value of 1.
