Figure 9-2 -Refer to Figure 9-2.As a Result of Trade,total Surplus Increases

question 183

Multiple Choice

Figure 9-2

-Refer to Figure 9-2.As a result of trade,total surplus increases by

• A) $80.
• B) $97.50.
• C) $162.50.
• D) $495.50.

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Definitions:

Yield

The annual percentage yield received from an investment, including interest or dividends, relative to the cost of that investment.

Rate Anticipation Swap

A switch made between bonds of different durations in response to forecasts of interest rates.

Portfolio Duration

A measure of the sensitivity of a portfolio's value to changes in interest rates, often used for managing the interest rate risk.

Interest Rates

The expense associated with obtaining a loan, or the incentive for depositing funds, usually shown as a percentage of the original amount.