You plan to purchase a home in x years. The goal is to have $L as a down payment. In order to meet that goal, you invest in two zero coupon bonds. One zero coupon bond for face amount A matures in x−t years. A second zero coupon bond for face amount B matures in x+t years. You choose amount A and B employing a full immunization strategy so that $L is immunized from interest rates changes. Assume the force of interest is δ. Calculate B−A.

The framers of the us constitution created a system of government that established branches of government set forth the powers of such a branches and placed limits on those powers what are the benefits of such a system? are there any problems associated with such a system?

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?