Bond Theorem Applications
What are Bond Theorem Applications and also write down its consequences?
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Bond Theorem Applications:
• When rates are expected to rise, a portfolio manager must avoid investing in long-term securities. The portfolio could view an important decline in value.
• When you are an investor and you predict interest rates to refuse, you might well want to invest in long-term zero coupon bonds. Since interest rates decline, the price of long-term zero coupon bonds will raise more than that of any other kind of bond.
Interpret the following Cross-Price Elasticities of Demand (XED) and explain the relationship between these goods. (3 marks total, 1.5 marks per part) XED= + 0.64 and XED= -2.6
Illustrate and explain using diagrams, the difference between long run supply in a constant cost individual firm and industry and an increasing cost firm and industry.
Demands for alcoholic and tobacco beverages tend to be relatively price inelastic and income inelastic. There per unit “sin taxes” upon these products will share out the tax burden: (i) proportionally among high-income and
When the firms are earning abnormal gains, how will the number of firms in industry change? Answer: The number of firms in industry will tend to rise.
I have a problem in economics on Proportion of total costs. Please help me in the following question. Demand for the labor is more elastic as the: (1) Bigger labor costs is as proportion of net costs. (2) Shorter the time-interval considered. (3) Bigg
Suppose a monopolist has zero marginal cost and faces the following demand curve D(p) = 10 - 2p (a) Graph the demand curve, the marginal revenue curve, and the rm's margin
Determinants of supply do not comprise: (1) Government regulations. (2) Technology. (3) Resource prices. (4) Prices for other producible goods. (5) Tastes and preferences. Can someone please help me in finding out the accurate answ
The equilibrium price for Christmas trees in the short run is: (w) P1. (x) P2. (y) P3. (z) P4. Q : Accounting profit when implicit cost Can someone please help me in finding out the accurate answer from the following question. When implicit cost surpasses implicit revenue and economic profit is zero (0), then accounting profit is: (1) Bigger than zero. (2) Zero. (3) Less than 0 (zero). (4) Not specifi
Can someone please help me in finding out the accurate answer from the following question. When implicit cost surpasses implicit revenue and economic profit is zero (0), then accounting profit is: (1) Bigger than zero. (2) Zero. (3) Less than 0 (zero). (4) Not specifi
The assertion which unions are more powerful nowadays than ever before is: (i) Supported by the consequences of the union contracts on an inflationary spirals. (ii) Reflected in the growing proportion of workers included in violent, protracted and costly strikes. (iii
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