payments to be received by the bond holder is lower Bond prices fall as market interest rates rise * Convexity in bond graphs demonstrates that progressive increases in interest rate results in progressive smaller reductions in the bond price Curve is flatter when reaching higher interest rates * Corporate bonds are issued at par value Underwriters must choose coupon rates which matches the market yields * Bondholders may buy or sell bonds in secondary markets In this market‚ bond
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wants to use Excel to determine the appropriate cutoff points for her grading curve. Generally‚ she wants to set the cutoff points so that the following distribution of grades is observed in the student body: F 5% D 10% C 35% B 35% A 15% Professor Reynolds has five possible grading curves. For example‚ in Grading Curve 1‚ she will assign As to test scores from 80 to 100. She wants you to evaluate each grading curve scenario and determine which one results in a distribution of grades closest
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1.0: INTRODUCTION (UTILITY) Coca-Cola is an international brand that are consumed everyday all around the world. Statistic has shown that each day‚ more than 8 million can of Coca-Cola is being sold worldwide. However today we are not going to discuss about the secret behind Coca-Cola success. On the other hand we are going to move from production to consumer where discussion will be about the utility of Coca-Cola. Every customer has their own satisfaction level‚ and it is different with each
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Principle 10 of Mankiw and Taylor’s Ten Principles of Economics: The Phillips curve shows the relationship between unemployment and inflation in an economy. Unemployment involves people who are registered as able‚ available and willing to work at the going wage rate but who cannot find work despite actively searching for work. Unemployment can be counted by using the claimant count which includes all those who are unemployed and actually claiming benefit in the form of Jobseekers Allowance
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INTRODUCTION The subject of economic growth and equitable distribution of income of any country is an economically important one. The fulfillment of economic development in each country is based on achieving two goals‚ including fairly rapid economic growth and income distribution in society. More growth and better distribution is not possible at the same time-some economist argued. So it needs to make trade-off. The issue of growth and income distribution is very much concerns to the economist
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University of Toronto Department of Economics (STG) ECO 204 2011 - 2012 Sayed Ajaz Hussain Lecture 1 © Sayed Ajaz Hussain‚ Department of Economics‚ University of Toronto‚ STG 1 Today About ECO 204 Motivational Example HBS Case: The Prestige Telephone Company Types of Optimization Methods in ECO 204 Unconstrained Optimization Evaluating change in optimal solution due to a small increase in a parameter Feedback? economics204@gmail.com © Sayed Ajaz Hussain‚ Department of Economics
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with an indifference map. Draw an indifference map with three indifference curves. b)There are a few standard assumptions about what an indifference map can and cannot look like. Which are these assumptions‚ and what reasoning lie behind them? 3. a)What is the marginal rate of substitution‚ MRS? State the definition and explain‚ in words‚ what it means. b)MRS will have an influence on the shape of the indifference curve. What influence? 4. a)Often we assume that consumers have diminishing MRS
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Department of Economics University of Toronto‚ STG 2 Today: Consumer Theory Preference relations and “Rational” preferences Commodities and Consumption set Felicity Utility functions Positive monotonic transformation Indifference Curves Marginal Rate of Substitution Feedback? economics204@gmail.com © Sayed Ajaz Hussain‚ Department of Economics University of Toronto‚ STG 3 Some Applications of Consumer Theory in ECO 204 Consumer Choice Consumer Preferences and Income
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中级微观经济学 参考书： Hal R. Varian. Intermediate Microeconomics‚ A Modern Approach. W. W. Norton & Company‚ Inc. 1 BUDGET CONSTRAINT Consumer theory ---- how consumers buy their goods? Economists assume: consumers choose the best bundle of goods they can afford. Two aspects: ----Consumers choose the most preferred goods. ----They are limited by economic condition. The Budget Constraint Consumption bundles: （消费束，商品组合）: a list of numbers of
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ANSWER SCHEME ECO551/553 APRIL 2010 QUESTION 1 a) A barter trade system is a system whereby people exchange goods for other goods. ( with example) b) There are many problems facing the barter trade. Three of these problems are: i) Double coincidence of wants ii) Rate of exchange iii) Divisibility ( with explanation) (b) The four functions of money are as follows: i) Medium of exchange ii) Unit of account iii) Store of value iv) Standard for deferred payment
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