Questions
Darren is considering adding three one‑year bonds to his portfolio. The face value on each bond...

Darren is considering adding three one‑year bonds to his portfolio. The face value on each bond is equal to $1,000.

If the current market interest rate is 44%, determine the present value (PV) of each bond. Enter your answers to two decimal places.

Face Value Coupon
ABC Bond $ 1,000 4%
DEF Bond $ 1,000 5%
GHI Bond $ 1,000 3%

PV ABC : $

PV GHI: $

PV DEF: $

In: Economics

Utility function is U = 0.5 ln q1 + 0.5 ln q2 a) What is the...

Utility function is U = 0.5 ln q1 + 0.5 ln q2

a) What is the compensated demand function for q1?

b) What is the uncompensated demand function for q1?

c) What is the difference between uncompensated demand functions and compensated demand functions?

In: Economics

The text defines the Malthusian trap as: “A point at which the world is no longer...

The text defines the Malthusian trap as: “A point at which the world is no longer able to meet the food requirements of the population, and starvation becomes the primary check to population growth.” In other words, population will outpace food production.

Discuss whether you believe this trap has been avoided for the next 100 years. Consider government policies (like China’s one-child policy), the use of genetically engineered crops, social patterns of family size, and environmental factors.

In: Economics

What are the characteristics or assumptions of the monopoly model? For each of the following markets...

What are the characteristics or assumptions of the monopoly model?

For each of the following markets explain the sources of monopoly power/barriers to entry: electric company, diamonds, new life-saving drug.

In what part of the demand curve will a monopolist operate? Why?

In: Economics

For each of the 3 causal questions (i, ii, and iii) answer the following (and label...

For each of the 3 causal questions (i, ii, and iii) answer the following (and label your answers clearly):

a. What is the outcome variable and what is the treatment?

b. Define the counterfactual outcomes Yi(0) and Yi(1)

c.What plausible causal channel(s) runs directly from the treatment to the outcome? In what direction would that push the results?

d.Is reverse causality a potential concern?

e.What are possible sources of selection and/or omitted variable bias in the raw comparison of outcomes and treatment status? Which way(s) would you expect the bias to go and why?

Questions

i.Many firms, particularly in poorer countries, are small and informal.Do informal firms grow more slowly than formal firms?

ii.Do students who come to class more get higher grades?

iii.Are countries whose governments are a larger part of the economy (ie G/GDP is larger) wealthier?

In: Economics

b) Explain at least two possible i. Positive economic effects of devaluing the pula. ii. Negative...

b) Explain at least two possible
i. Positive economic effects of devaluing the pula.
ii. Negative economic effects of devaluing the pula.
[12 marks]

In: Economics

Consider a one period macroeconomic model for the closed economy of the island of Anabel. Describe...

Consider a one period macroeconomic model for the closed economy of the island of Anabel. Describe the three agents in the model, the exogenous variables, and the endogenous variables in the model. Graph and describe the competitive equilibrium of Anabel's economy.

In: Economics

The price of oil in international markets has dropped stunningly 60% in the past twelve months....

The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil.

Look at the supply and demand picture for this commodity and try to analyze its price action. Discuss the impact of price elasticity of supply and demand in the short and long terms.

Should be in 3-4  pages thanks

In: Economics

western civilization- explain in 50 to 75 words the most important reason why Germany OR Italy...

western civilization- explain in 50 to 75 words the most important reason why Germany OR Italy became a unified nation in the 1860s (Do not write about both).

In: Economics

This week's graded discussion forum requires students to demonstrate their understanding of market interest rates and...

This week's graded discussion forum requires students to demonstrate their understanding of market interest rates and the impact of interest rates on marketable securities. Marketable securities include low-interest return investments such as money market deposits and certificate of deposits, debt securities (bonds) with fixed coupon rate but fluctuating yields, and equity investments. To prepare for this assignment, students are to study the chapter readings and conduct additional research to prepare a short analysis posting of 400 words (min). See the description in Week 1 Readings for selection criteria for your article. The primary focus of the selected article must be specific to U.S. interest rates within the last 12 months.

In your analysis piece, synthesize the primary point(s) of your selected article with a minimum of two concepts presented in the required chapter readings (1, 2, and 3). In your analysis piece you are to describe and address each of the following:

  1. Why is your article relevant? Articulate the reasons for relevancy.
  2. What are the relationship(s) between the chapter concept(s) and your article and analyze the relationship(s)?
  3. What is the impact of the relationship to the investment policy of the firm, and/or individual investor?

In: Economics

Explain the Keynesian framework for aspect of aggregate output and aggregate demand

Explain the Keynesian framework for aspect of aggregate output and aggregate demand

In: Economics

The production function of a firm is given by Q(K,L) =15K^(1/4) L^(1/4) . Wage is $3...

The production function of a firm is given by Q(K,L) =15K^(1/4) L^(1/4) . Wage is

$3 per unit of labor (L), and rent is $6 per unit of capital (K).
(1) The firm’s objective is to produce Q units of output at minimum cost. Write the Lagrangian and derive the FONC.
(2) Find the optimal levels of K, L, and λ given Q.

(3) Find the minimum cost given Q = 100. Find the firm’s minimum cost functiongiven any Q.

(4) Explain the meaning of the optimal λ obtained in part (2).

(5) Check the SOSC.

Could someone help me with this question step by step? Thanks!!

In: Economics

What is the marketing strategy pursued by Ingvar Kamprad of IKEA in the American market and...

What is the marketing strategy pursued by Ingvar Kamprad of IKEA in the American market and led to its failure?
What are the factors that encourage the use of such a strategy?

case study Ikea in sweden.

In: Economics

You are an employee of an U.S. firm that produces personal computers in Thailand and then...

You are an employee of an U.S. firm that produces personal computers in Thailand and then exports them to the U.S. and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How do you think your firm should respond? What does this tell you about the use of targeted trade barriers?

In: Economics

High-End Furniture Industry Analyses of internal environment and external environment )Internal risks External risks How risks...

High-End Furniture Industry

Analyses of internal environment and external environment )Internal risks External risks How risks will be avoided Actions when risks occur

In: Economics