--%>
Assignment Help - homework help

Calculating Present Value by Interest Rate

When all bonds are perpetuities which annually pay $1000 (the sum of one thousand and 00/100 dollars) per annum, at an interest rate of 10 percent, the price of these bonds is: (1) $4000. (2) $5000. (3) $6250. (4) $8000. (5) $10,000.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Determine price elasticity of demand

    The price elasticity of demand for DVD games among prices of $10 and $20 is approximately: (w) 3/2. (x) 3/7. (y) 1. (z) 16.333.

    Q : State normal good Normal good : It is a

    Normal good: It is a good for which, other things equivalent, a rise in income leads to a rise in demand.

    		•
  • Q : Tacit collusion by oligopolists Tacit

    Tacit collusion through oligopolists is possible when: (w) agreed to by the government. (x) a price leader is visible. (y) the oligopolists succeed in forming a cartel. (z) very few firms control the market. How ca

    		•
  • Q : Coefficient of elasticity of relatively

    Please help me to solve the problem that is given below: A relatively price elastic demand curve would consist of a coefficient of elasticity of as: (w) ep = 1. (x) ep > 1. (y) ep < 1. (z) ep

    		•
  • Q : Concentration ratio explain the concept

    explain the concept of a concentration ratio. is the concentration ratio in a monoplistically competitive industry likely to be higher than for a perfectly competitive industry?

    		•
  • Q : Short-run equilibrium of purely

    At the price P1, the given figure of purely competitive cranberry industry is within: (w) long-run equilibrium. (x) short-run equilibrium. (y) market period disequilibrium. (z) short-run disequilibrium. <

    		•
  • Q : Demand of various vegetable why demand

    why demand change of onion in during one week due to change in it's price?

    		•
  • Q : Monopsonistic exploitation-Labor union

    Can someone please help me in finding out the accurate answer from the following question. Labor union contracts, a comparable significance rule, or minimum wage laws might boost equilibrium employment when a firm has been practicing: (i) Blacklisting

    		•
  • Q : Capital markets efficiency What is

    What is capital markets efficiency?

    		•
  • Q : Illustration of transaction costs You

    You are more probable to shop at a remote farmers’ market quite than buy apples at a local grocery store while: (w) possible, since produce is cheaper at the farmers’ market. (x) you would like to buy only vegetables and fruits. (y) the opportunity costs o

    		•