Assume that a consumer's utility over two years is a function of consumption during the twe years. Let the consumer's utility function be U(C.C) = In C + 3 In C2. where Ci is consumption during the 1st year, and C2 is the consumption during the 2nd year The consumer's income is Y, during the Ist year and Y, during the 2nd year. Let R denote the annual interest rate (0 < R< 20%), at which the consumer can choose te borrow or lend across the two years. The consumer's budget constraint is

Consider a cash flow of payments C1,C2,...,Cn at the end of years t1,t2,...,tn. Suppose the nominal interest rate is r=0.04 and that interest is compounded monthly. Select all the correct statements. a) If all the above cash payments are the same then the effective duration is equal to the duration. b) The convexity is the same as the duration squared in this case. c) The duration and the effective duration are the same for this example. d) The effective duration is equal to 300/301 times the duration in this case. e) The effective duration is equal to 25/26 times the duration in this case.

In the normal interest equation [(1 + i)^n] do we need to find the effective interest rate [1 + (r/m)]^m then directly plug in the found effective interest rate or not into the normal interest equation [(1 + i)^n] (when dealing with a non-annual compounding period). EXPLAIN WHY or WHY NOT (in detail, in an easy to understand format).

1. math of interest. please solve correctly

Consider the following bond purchased at $800 in 2018. F=1000; C=100; N=5; P=800 If the investor sold the bond in 2019 without holding till maturity did he/she make a profit or a loss? What is the rate of return in 2019?

Suppose a wealthy university booster has pledged a superstar high-school sophomore hockey recruit $1,000 as a gift the day they give a verbal commitment to play hockey at the booster's alma mater. Assuming a constant interest rate of 11%, consider the present and future values of this gift, depending on when the recruit announces their commitment. Complete the first row of the following table by determining the value of the gift in one and two years with interest if you become engaged today and save the money. Date Received Today In 1 year In 2 years Present Value (Dollars) 1,000.00 Value in One Year (Dollars) 1,000.00 Value in Two Years (Dollars) 1,000.00 Now complete the first column of the previous table by computing the present value of the gift if the recruit commits in one year or two years. The present value of the gift is if the recruit commits in two years than it is if you get engaged in one year.

Economics Questions 1, 2, 3, and 4 How to solve and answer these four econ questions showed in the screenshot?