ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- A bond has a face value of $1000 and a coupon rate of 5.2%. What would the rate of return be if the bond was bought for $983.6 and sold one year later for $1008.5? Select one: O a. 8.61% O b. 8.24% O c. 7.82% O d. 7.21%arrow_forwardAnswer the following questions in your own words. Start a new thread while replying. 1. What are the determinants of price elasticity of demand? Explain the determinants. 2. What is the difference between inelastic demand and elastic demand? Provide an example of each from real life. 3. Refer to the graph below: Price 22 20 + 18 +- 16 + 14 B 12 10 + 4 Demand +++ 100 200 300 400 500 600 700 800 900 Buaxtity From the graph above calculate: a. Price elasticity of demand from point A to point B (use the mid-point method). Is it an elastic situation or an inelastic situation? b. Price elasticity of demand from point B to point C (use the mid-point method). Is it an elastic situation or an inelastic situation?arrow_forward2. (This problem derives the general result that any polynomial function is of a lower asymptotic order than any exponential function.) First, we prove a special case. Suppose that we have two functions, f(n) = n² and g(n) = 2". We will prove that f(n) = O(g(n)). • port (a). (c) Show that, for any n ≥ no, it must be the case that f(n) ≤ cog(n) = f(n+1) ≤ cog(n+1). Precisely state the argument by induction that n² = 0(2¹). Now, define f(n) = nk where k ≥ 1, g(n) = a", where a ≥ 1. (d) (Slightly harder). Argue that, for any k and a, there exists some n₁ such that : (1₁+¹)* < a.arrow_forward
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