Rick bought a bond when it was issued by macroflex corporation 14 years ago. the bond, which has a $1,000

face value and a coupon rate equal to 10 percent, matures in six years. interest is paid every six months; the next

interest payment is scheduled for six months from today. if the yield on similar risk investments is 14 percent,

what is the current market value (price) of the bond?

Aprice control is: question 1 options: a)a tax on the sale of a good that controls the market price.b)an upper limit on the quantity of some good that can be bought or sold.c)a legal restriction on how high or low a price in a market may go.d)control of the price of a good by the firm that produces it.

Abeverage company puts game pieces under the caps of its drinks and claims that one in six game pieces wins a prize. the official rules of the contest state that the odds of winning a prize are is the claim "one in six game pieces wins a prize" correct? why or why not? 1: 6.

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?