Which of the Following Is Closest to the Duration of a 2-Year

question 1

Multiple Choice

Which of the following is closest to the duration of a 2-year bond that pays a coupon of 8% per annum semiannually? The yield on the bond is 10% per annum with continuous compounding.

• A) 1.82
• B) 1.85
• C) 1.88
• D) 1.92

Grasp the concept of sunk costs and their impact on business decisions.

Understand the principles behind the Third Industrial Revolution and its potential effects on production and transportation costs.

Comprehend how additive manufacturing (3-D printing) affects economies of scale, production costs, and manufacturing industry dynamics.

Differentiate between explicit costs, implicit costs, and the importance of including both in economic cost calculations.

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Definitions:

Domestically

Pertaining to activities or production within a country's own borders, as opposed to internationally.

Trade Barriers

Measures imposed by governments to regulate or limit international trade, including tariffs, quotas, and import bans.

Economic Growth

An increase in a country's output of goods and services, typically measured by GDP, over time.

Hong Kong

A Special Administrative Region of China known for its vibrant economy, tall skyline, and deep natural harbor.