Bond a pays $8,000 in 28 years. bond b pays $8,000 in 14 years. (to keep things simple, assume these are zero-coupon bonds, which means the $8,000 is the only payment the bondholder receives.)

suppose the interest rate is 5 percent.

using the rule of 70, the value of bond a is approximately and the value of bond b is approximately

.

now suppose the interest rate increases to 10 percent.

using the rule of 70, the value of bond a is now approximately and the value of bond b is approximately

comparing each bond’s value at 5 percent versus 10 percent, bond a’s value decreases by a percentage than bond b’s value.

the value of a bond (falls/rises) when the interest rate increases, and bonds with a longer time to maturity are (less/more) sensitive to changes in the interest rate.

Case in point 1.2 suppose you work in the it department of global hotels, a multinational hotel chain. global hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. guests can make one-stop online reservations by visiting global's website, which has links to all major travel industry sites. global hotels just acquired momma's, a regional chain of 20 motels in western canada. momma's uses a vertical reservations package suitable for small- to medium-sized businesses and a generic accounting and finance package. should momma's use global hotels' information systems or continue with its own? in your answer, consider issues such as business profiles, business processes, system interactivity, edi, ecommerce, and the characteristics of both information systems. what additional information would be to you in making a recommendation?

1) u.s. real gdp is substantially higher today than it was 60 years ago. what does this tell us, and what does it not tell us, about the well-being of u.s. residents? what are the limitations of the gdp as a measure of economic well-being? given the limitations, why is gdp usually regarded as the best single measure of a society’s economic well-being? 2) what is an intermediate good? how does an intermediate good differ from a final good? explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of gdp, but the value of intermediate goods produced and not sold is included directly as part of gdp.

Select all that apply. what do opponents of minimum wage believe are the results of minimum wage? increases personal income results in job shortages causes unemployment raises prices of goods