Mr. James has two coupon bonds with different maturities. Bond A has 10 years of maturity, while bond B has 30 years of maturity. Both the bonds have 10% coupon rates paid annually and a par value of $100. If the yield to maturity changes from 5% to 6%, what is the percentage change in the price of each bond?
In: Finance
In: Finance
In: Finance
Think about your current situation and what happens when prices increase generally. There are several methods that can be used to measure changes in prices but one of the most commonly used method is the CPI.
3. How does inflation affect society and who are the losers and gainers from inflation?
4. Define demand pull inflation and cost push inflation.
In: Economics
Let's suppose we are living in a country in which opportunities of making profits, and entreprenurial activity are main determinants of investment demand. In this scenario, how is parameter b? How this affect the elasticity of investment with respect to changes in interest rate? How a cut in the benchmark interest rate could affect the quantity of investment in the economy? Explain thoroughly, use models, and graphs.
In: Economics
For this assignment, I am developing the presentation I must present to management to sell my strategy idea and plan. This is for the company FedEx.
What are the strategy changes or alternatives you recommend for the company?
Why did you select these strategy alternatives (business case)?
How will you implement your plan? Proposed timing.
What are the predicted outcomes and expected measures?
In: Operations Management
The demand functions for two commodities, A and B, are given by QA=AP-0.5Y0.5 and QB=BP-1.5Y1.5
(a) Find the price elasticity of demand for each good and hence comment on the relative sensitivity of demand due to changes in price.
(b) Find the income elasticity of demand for each good. Which good is normal and which is superior? Give a reason for your answer.
In: Economics
1) An economy is currently producing at an equilibrium level of real GDP of $14 trillion. What will happen if government spending (alone, with no other changes) decreases by $100 billion? Will real GDP increase or decrease? Explain why it will change by $100 billion, by less, or by more.
2)Explain why rising prices reduce the spending multiplier effect of an increase in aggregate demand.
In: Economics
The Knight Capital Group story (see page 293 in the 12th edition), demonstrates that: A. regulated markets always run well. B. dark pools operate better than public markets. C. high frequency trading can destroy capital value by accident in a short time. D. changes in oil prices and interest rates are highly correlated.
In: Finance
In an event-driven program, you design the screens, define the objects, and define how the screens will connect. Within an event-driven program, a component from which an event is generated is the source of the event.
In: Computer Science