1. What are the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policymakers at each policy meeting?
2. A bond with a 9-year duration is worth $1,086, and its yield to maturity is 8.60%. If the yield to maturity falls to 8.38%, you would predict that the new value of the bond will be approximately ________
3. A share of stock of a Dutch firm listed on both the Amsterdam and New York Stock Exchange is traded on a Dutch stock exchange at 15 euros when the Dutch market closed. As the U.S. market opens, the euro is worth $1.10. Thus, the price of the Dutch firm stock in New York should be ______ to prevent arbitrage?